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2. Chirume case scenario As part of an attribution analysis Itai Chirume, CFA, has accumulated the following partial data for his portfolio. For payment of
2. Chirume case scenario As part of an attribution analysis Itai Chirume, CFA, has accumulated the following partial data for his portfolio. For payment of performance bonus, Chirume prefers to use the \7 return of on the broad market index as determined at the beginning of the year as a performance evaluation benchmark. i) Using the available data, calculate and explain the pure sector allocation value added by the Capital goods sector allocation. ii) Using the available data, calculate and explain the within-sector allocation value added by the Energy sector. iii) Using the available data, calculate and explain by the allocation /selection interaction value added by the Agricultural sector. (6) iv) Evaluate the validity of the benchmark that Chirume utilizes in assessing his performance. 2. Chirume case scenario As part of an attribution analysis Itai Chirume, CFA, has accumulated the following partial data for his portfolio. For payment of performance bonus, Chirume prefers to use the \7 return of on the broad market index as determined at the beginning of the year as a performance evaluation benchmark. i) Using the available data, calculate and explain the pure sector allocation value added by the Capital goods sector allocation. ii) Using the available data, calculate and explain the within-sector allocation value added by the Energy sector. iii) Using the available data, calculate and explain by the allocation /selection interaction value added by the Agricultural sector. (6) iv) Evaluate the validity of the benchmark that Chirume utilizes in assessing his performance
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