Portfolio UL

[Randy Moon]

The provided ULportfolio formula doesn't seem to align with the formula used in the example. Appears the example used weight-squared values for each individual UL but the currency formula doesn't mention the weights, much less weights squared. Assuming I'm missing something obvious here. Please advise.

 

[bollengc]

The provided ULportfolio formula doesn't seem to align with the formula used in the example. Appears the example used weight-squared values for each individual UL but the currency formula doesn't mention the weights, much less weights squared. Assuming I'm missing something obvious here. Please advise.

View attachment 3668

View attachment 3669

hi @Randy Moon,
just a small note to say that maybe it is good if you make reference to what you are looking at - it will help people trying to help you ? (study notes - which chapter and page or which practice question).
As well, I think you can already find a lot of explanations on UL in the forum - have you taken a look at that thread https://forum.bionicturtle.com/threads/unexpected-loss-formula-decipher.14040/#post-91606 ?
thanks,
Camille

 

[David Harper CFA FRM]

Thank you truly Camille (@bollengc ). @Randy Moon I think that thread explains exactly the reconciliation you seek ....