Question
1) Gidding fund allocated 0.10 weight to bonds which returned 6%, and 0.90 weight to stocks which returned 16%. Its benchmark allocated 0.50 weight to
1) Gidding fund allocated 0.10 weight to bonds which returned 6%, and 0.90 weight to stocks which returned 16%. Its benchmark allocated 0.50 weight to bonds which returned 5%, and 0.50 weight to stocks which returned 15%.
- What is the contribution of asset allocation to Giddings total excess return in percent, rounded to the nearest basis point?
- What is Giddings total excess return in percent, rounded to the nearest basis point?
2) Coker Fund allocated 0.40 weight to bonds which returned 2%, and 0.60 weight to stocks which returned 9%. Its benchmark allocated 0.4 weight to bonds which returned 4%, and 0.6 weight to stocks which returned 7%. What is the contribution from security selection to Cokers total excess return in percent, rounded to the nearest basis point?
- What is the contribution of asset allocation to Coker's total excess return in percent, rounded to the nearest basis point?
- What is Coker's total excess return in percent, rounded to the nearest basis point?
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
