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CFA Level 2
Portfolio Management

Basic Understanding of Attribution Analysis

Very Easy Performance Evaluation Attribution Analysis

Attribution analysis is a method used in portfolio management to evaluate the performance of a portfolio and the contribution of individual assets to that performance. It helps identify whether the portfolio manager's decisions have added value relative to a benchmark. This analysis breaks down the sources of portfolio return into segments attributable to asset allocation and security selection.

Which of the following statements correctly describes an objective of attribution analysis?

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