Allocation of EC and Risk Capital

[carzymathematician]

Pg 38 of JAM's Condensed Outline summarizes some points on the Individual Car vs. the Marginal Car. They mentioned
(1) Sharing the diversification benefit pro rata
(2) Using the Marginal Car approach (equivalent to Merton Perold Method)
(3) Stand Alone
(4) Total Capital after diversification * unit's internal beta

These points are really just listing the different ways to allocate any risk measure (eg. EC, Risk Capital, Var etc), right? I guess I'm just looking confirmation on my interpretation of this section. :crazy:

[TiderInsider]

You're correct...I think the title of the list isn't very helpful and I edited on my notecard.