Hi, For methods to allocate capital for performance measurement e.g. marginal last-in, percentile, etc. --> are these referring to allocation of 'total' capital or 'economic capital'?
You can allocate any amount of capital using these methods. Which amount you choose to allocate will probably depend on the purpose of the exercise etc. For performance measurement, it is probably sensible to think about allocating economic capital as that is the amount of capital a company thinks it needs to hold in order to meet its own objectives.
