Sir, why returns based attribution is most vulnerable to data manipulation?
And what is the difference between returns based attribution and returns based style analysis? Is the broad purpose the same?
Text from core-
Returns-based attribution is the easiest method to implement, but because it does not use the underlying holdings, it is the least accurate of the three approaches and the most vulnerable to data manipulation.
Hi
hope your preps are going great. Myself along with other mods have been very active in reply to CFA L3 doubts, especially in the last 3 months…I’m sure you’ve seen and will acknowledge the same. Your examinations must be due in a day or two. At this juncture, it is strictly advisable not to go into the minutures by continuing the doubts spree. Instead approach should be to take a macro perspective … look at the curriculum thematically … go through certain important questions from CR which you must’ve highlighted and also, look at the EOC summary.
hence, I am not not going through the doubt and would advise you to ignore the same and not post further doubts. All the best for your L3 exams.