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I am using the typical Brinson Model formula, but it doesn´t work, I think that is explained because of the compound effect and rebalancing... when I look my portfolio's YTD return and multiply by the weight of each part (FI, Equity and Cash) the result of the sum of that three values is different from my compounding YTD. And when i calculate the Brinson Model for the Performance Attribution with the today's weights and YTD returns, the result is equal to the sum of each return (Fixed Income, Equity & cash) by the Total return.. Wrong thing, because in theory, the Brinson would give the my YTD return explained by a X and Y selection and allocation effect.

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    $\begingroup$ i've been working in the performance attribution and performance contribution and I conclude that it's really important to have in tend the role of the realized return. Your today's portfolio gives you a X% YTD return given your positions, but you have to account how many return have you realized witrh your selled positions. I'm keeping learning,.. $\endgroup$ – j_ortega Sep 10 at 20:05

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