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10 Performance & Risk: Performance Attribution Assume the following information. Technology sector portfolio weight - 40% Technology sector benchmark weight -30% Technology sector portfolio return
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Performance & Risk: Performance Attribution Assume the following information. Technology sector portfolio weight - 40% Technology sector benchmark weight -30% Technology sector portfolio return = 18% Technology sector benchmark return - 10% Overall benchmark return - 10% What is the SELECTION effect for performance attribution of the technology sector? As promised, this question is like the quiz question but this time I am having you calculate selection effect (the quiz had you calculate allocation effect). Hint: For help, see formulas on slides 34 and 36 of the performance and risk slides. Note that you can use the spreadsheet provided in class (its on Canvas and called Performance Risk CopiedData and see tab labeled Attribution). The formulas/calculations for examples done in class are in column B How to enter answer and a hint: Enter in one decimal. For example, if your answer is 1.6%, enter 1.6. To help you and so there is no confusion on how to enter the answer, please note that the actual answer will range between 3.0 and 3.0. That is it ranges between -30% to 3.096, or 300 basis points to 300 basis points, or -0.03 to 0.03 as these are all different ways to convey the same Step by Step Solution
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