Question
Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector of
Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector of the managers portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column (4).
a-1. What was the manager' return in the month? (Do not round intermediate calculations. Round your answer to 2 decimal.)
Manager's Return __________%
a-2 What was her over or underperformance? (Input the value as positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Over Performance or Under Performance ___________%
b. What was the contribution of security selection to relative performance? (Negative value should be indicated by a minus sign. Do not round intermediate calculations Round your answer to 2 decimal places.)
Contribution of Security Selection ___________%
C. What was the contribution of asset allocation to relative performance? ( Do not round intermediate calculations Round your answer to 2 decimal places.)
Contribution of Asset Allocation ____________%
Index Return 4.3% (S&P 500) Actual Actual Benchmark Equity Bonds Cash Return Weight Weight 0.60 0.20 0.20 3.8% 2.5 2.5 0.50 0.30 0.20 3.4 (Aggregate Bond index) 2.5Step by Step Solution
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