Effect Simulation
WEIGHT Effect variation (fig 2.1) Objective: To determine the Weight Effect for a given allocation under various price scenario. For example Switzerland country fund with 0.8% allocation to Energy sector, would have a Weight Effect running between +1.25% to -0.5% corresponding to price return variation between -25% and +20%. Likewise Norway with 39.9% allocation would have a much larger Weight Effect swing for the same return range. [...]