In the beginning of the text in Reading 35, “the contribution to allocation in the ith sector is equal to the portfolio’s sector weight minus the benchmark’s sector weight, times the benchmark sector return.” Equation (3) Ai = (wi – Wi)Bi
However later on in the discussion of micro attribution, the text states: "We calculate the return attribution effects using the Brinson–Fachler approach at the segment level (i.e., small-cap value, large-cap value, and large-cap growth):
Allocation = (wi–Wi)(Bi–B)
Why are the equations different? Wouldn’t sector, market cap, or country allocation all fall under segment level?
Thanks