Loading...
CFA Level 2
Portfolio Management

Understanding the Benefits of Attribution Analysis

Very Easy Performance Evaluation Attribution Analysis

Attribution analysis is a method used to evaluate the performance of a portfolio by examining the contributions from various components, such as sectors or individual securities. This analysis helps in identifying which investments helped in achieving the portfolio's overall performance. Consider a portfolio manager who has allocated funds across different sectors in the market. In this context, which of the following statements best explains the primary benefit of conducting attribution analysis?

Hint

Submitted10.2K
Correct6.8K
% Correct67%