performance contribution analysis

[RoccoLee]

When we evaluate the sector’s performance contribution, do we need to incorporate its weight in the portfolio?
For example,
Benchmark return for sector A is 10%, Portfolio return for sector A is 15%;
Benchmark weight is 30%, Portfolio weight is 20%.
Should we say the selection in sector A has postive performance contribution, even though its weight is less then the benchmark weight?
Many thanks!

 

[cpk123]

there are 3 parts to it
(rp-rb) * wb
(wp-wb)* rb
(wp-wb)*(rp-rb)=> sector allocation interaction
p=portfolio
b=benchmarks
and i forget the name of the first two…

 

[RoccoLee]

cpk123 wrote:
there are 3 parts to it
(rp-rb) * wb
(wp-wb)* rb
(wp-wb)*(rp-rb)=> sector allocation interaction
p=portfolio
b=benchmarks
and i forget the name of the first two…

But Kaplan’s practice exams just compare the return of sector and return of benchmark directly?