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A global equty manager is asslgned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing
A global equty manager is asslgned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her retums to the retum on the MSQI World Market Portfollo, but she is free to hold stocks from varrous countites in whatever proportions she finds desirable. Results for a given month are contained in the following table:
tableCounteytableWeight inMSCT IndextableManagersweighttableManagers Returncountrytablein Return of Stock Indexfor That countryOKJapanGermanyQ
Required:
a Calculate the total value added of all the manager's decislons this perlod.
Note: Do not round intermediate calculations. Round your answer to decimal places. Negative amount should be indicated by a minus sign.
Added value
b Calculate the value added or subtracted by her country allocation decisions.
Note: Do not round Intermediate calculations. Round your answer to decimal places. Negative amount should be indicated by a minus sign.
Contribution of country allocation
C Calculate the value added from her stock selection ability within countrles.
Note: Do not round intermediate calculations. Round your answer to decimal places. Negative amount should be indicated by a minus sign.
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