Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 24 3.34 pts Sector ETF >> Benchmark Benchmark weights (Wsb) ETFs Returns (Rsb) Stocks Holding Weights (Wsh) Holdings Returns (Rsh) 0.25 Financials Healthcare cons.
Question 24 3.34 pts Sector ETF >> Benchmark Benchmark weights (Wsb) ETFs Returns (Rsb) Stocks Holding Weights (Wsh) Holdings Returns (Rsh) 0.25 Financials Healthcare cons. Staples XLF XLV XLP 1.27% 4.30% 0.50 AIG, etc. TC, etc. DIS, etc. 0.23 0.55 0.22 0.31% 5.92% 4.10% 0.25 3.86% Benchmark (R tot b) Portfolio (R tot p) Difference 3.43% 4.23% 0.80% Sector Allocation Selection Interaction Sum Financials Healthcare cons. Staples 0.04% 0.04% -0.01% -0.24% 0.81% 0.06% 0.02% 0.08% -0.01% -0.18% 0.93% 0.04% Sum 0.07% 0.63% 0.09% 0.80% Based on the two tables above, what can you say about this portfolio manager? He/she was best at stock selection for Healthcare sector out of all other attribution aspects He/she had best performance in the Consumer Staples sector He/she was bad at stock selection but good at allocation for the Consumer Staples sector He/she made good allocation and good stock selection for Financials sector
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started