Formula Policy
Certain formulas in the Expert curriculum need not be memorized because they will be accessible on the computer screen during the exam. If an item set requires calculations using one or more of the formulas listed below, the appropriate formulas will appear as pop-up exhibits in the related item set questions.
The specified formulas will be shown exactly as they appear in the “List of Formulas Used” in the Resources section of the Expert courseware. Variable names will not be defined. For example, if a formula uses the expression 1 + bi, the candidate is expected to know what bi stands for.
The following formulas will be provided on-screen:
| Number | Description |
| 21 | Geometric Asset Allocation Effect (Sector View) |
| 22 | Geometric Stock Selection Effect (Sector View) |
| 23 | Geometric Attribution of Active Return (Sector View; Interaction Included in Selection) |
| 24 | Geometric Attribution of Active Return (Portfolio View) |
| 25 | Arithmetic Attribution with Cariño Smoothing Factor |
| 26 | Arithmetic Attribution with GRAP Smoothing |
| 27 | Multiperiod Geometric Attribution |
| 28 | Multicurrency Attribution (Karnosky and Singer) |
| 29 | Naïve Currency Effect (Geometric Attribution) |
| 30 | Attribution Analysis with Short Positions (Menchero) |
| 31 | Attribution Analysis for Market-Neutral Strategies (Menchero) |
| 33 | Fixed Income Attribution (Campisi) |
| 34 | Fixed Income Attribution (van Breukelen) |
This policy applies only to the formulas listed above. The candidate is responsible for memorizing all other formulas used in the Expert curriculum.