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Ronald W. Kaiser Traditionally, asset allocation involves efficient frontiers of forecasted returns and risks. A simple model is constructed to allocate portfolios between stocks and real estate and between bonds and real estate, taking into account the inherent time delays and transaction costs. In this study, we offer a refinement to a return attribution method proposed by the pioneers of return attribution analysis. Returns for the aggregate portfolio are decomposed into selection and allocation contributions as originally presented. We introduce the use of a neutral effect, which aggregates to zero at the portfolio level, that insures proper interpretation of the decomposition of the sector returns of the portfolio into selection and allocation contributions.