Loading...
CFA Level 2
Portfolio Management

Understanding Attribution Analysis

Very Easy Performance Evaluation Attribution Analysis

In portfolio management, performance evaluation is critical for assessing the effectiveness of investment strategies. One of the key tools used in this evaluation is attribution analysis, which breaks down the portfolio performance into contributions from different sources. Consider a portfolio that has outperformed its benchmark. Attribution analysis helps managers understand where the excess returns originated. Which of the following statements accurately describes the primary purpose of attribution analysis?

Hint

Submitted4.0K
Correct3.2K
% Correct82%