What is the role of attribution in measuring asset class performance?

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If you are an investment banker, you need to know how to measure and compare the performance of different asset classes, such as stocks, bonds, commodities, and alternatives. But how do you determine which factors contribute to the returns and risks of each asset class? This is where attribution comes in. Attribution is a method of analyzing the sources of performance for an asset class or a portfolio. It helps you identify and quantify the drivers of returns, such as market conditions, asset allocation, security selection, currency effects, and fees. In this article, you will learn what is the role of attribution in measuring asset class performance and how to apply it in practice.