The Practice Problem gave the following information:
Portfolio Weight: 20.38%, Benchmark Weight: 18.82%, Portfolio Return: 20.00%, Benchmark Return: 35.26%
The solution for the allocation effect was given as (Portfolio Weight - Benchmark Weight) x (Benchmark Return - Portfolio Return) = 0.20%.
Why is the multiplier (Benchmark Return - Portfolio Return), under the Brinson-Fachler Model, shouldn’t it be (Portfolio Return - Benchmark Return)?
Thanks!