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if anyone out there has any experience with calculations for a similar model on excel,pls let me know. i've got an excel spreadsheet set-up with weights for each sector allocation and benchmarks index levels. (by the way, this is for bond portfolio). i know it can get very complicated with duration and all, but i'm looking at simplified casebasically, i'm having trouble figuring out how to calculate outperformance relative to benchmark when overweight (price appreciation) and underweight (price declines).if anyone would be kind enough to take a look at this, i can send you the attachment.thanks in advance.

Bond,Some very good examples and thurrogh documentation can be found at:http://www.ipoglobal.biz/Interaction101.htmBest of luck !

Silvershark's excel link seems interesting... I am not sure on your weighting problem i don't completelyunderstand what you mean by price appreciation andprice decline...and that excel sheet would help things..Aaron and others have dwelton performance attribution in several other threads...Key issue here is in terms of discerning between skill and luck..so if you are using return based attribution?. Then you would look atex-post returns to ex-ante risks. One method is to take Jensen's approach where youseparate returns into systematic and residual component using someform of regression and test to see if there is a non-zero residual.. Other alternative is to lookat Sharpe ratio for the portfolio and the benchmark..?..And then there are more elegant mechanisms too...

would you mnid if i emailed you the excel file and then maybe you can let me know))))basically, i'm having trouble figuring out how to calculate outperformance relative to benchmark when overweight (price appreciation) and underweight (price declines).i mean to say, i would want my recommendations to be compensated for changes in yield curve.thanks again

Sure did you get my private message?

sorry quantie, i don't understand your questionpls let me know about your email, and i'll send attachment...thanks