M
MrMikeR
Member
I think my understanding/misunderstanding of this topic can be cleared up with the following question. I get the general idea and could probably produce the maths in the exam. However.....
What I dont get is this. If the stock selector just follows the notional portfolio, the returns due to sector selection will all be zero and all the return will be attributed to the stock selectors. However surely the the sector selectors would deserve some credit as it is their strategy that was followed exactly?
I think I am missing something in my overall understanding. The maths of it seems fine to me.
What I dont get is this. If the stock selector just follows the notional portfolio, the returns due to sector selection will all be zero and all the return will be attributed to the stock selectors. However surely the the sector selectors would deserve some credit as it is their strategy that was followed exactly?
I think I am missing something in my overall understanding. The maths of it seems fine to me.