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A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing
A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be
evaluated by comparing her returns to the return on the MSCl World Market Portfollo, but she is free to hold stocks from various
countries in whatever proportions she finds desirable. Results for a given month are contained in the following table:
Requlred:
a Calculate the toral value added of all the manager's decisions this period. Do not round Intermedlate calculations. Round your
answer to decimal places. Negatlve amount should be indlcated by a minus sign.
Answer is complete but not entirely correct.
Added
value
b Calculate the value added or subtracted by her country allocation decisions. Do not round Intermedlate calculations. Round your
answer to decimal places. Negatlve amount should be Indlcated by a minus sign.
Answer is complete but not entirely correct.
c Calculate the value added from her stock selection ability within countrles. Do not round intermedlate calculations. Round your
answer to decimal places. Negotlve amount should be indlcated by a minus sign.
Answer is complete but not entirely correct.
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