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The R Journal

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Date of this Version

12-2013

Document Type

Article

Citation

The R Journal (December 2013) 5(2); Editor: Hadley Wickham

Comments

Copyright 2013, The R Foundation. Open access material. License: CC BY 3.0 Unported

Abstract

The pa package provides tools for conducting performance attribution for long-only, single currency equity portfolios. The package uses two methods: the Brinson-Hood-Beebower model (hereafter referred to as the Brinson model) and a regression-based analysis. The Brinson model takes an ANOVA-type approach and decomposes the active return of any portfolio into asset allocation, stock selection, and interaction effect. The regression-based analysis utilizes estimated coefficients, based on a regression model, to attribute active return to different factors.

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