Performance Attribution

Which statement would be most accurate?

Incorrect. It is best to use an attribution framework with specific qualities. Think about the purpose of an attribution analysis.

Correct! To provide the most benefit and useful results, the attribution framework should reflect the investment decision-making process. This will lend itself to more insightful information.

Incorrect. The decision to select a particular attribution approach shouldn't come from a review of different approaches. Think about the purpose of an attribution analysis.

The same attribution approach can be used for most investment strategies

The investment strategy should guide the decision as to which attribution approach to use

The investment manager should objectively evaluate and select the attribution approach