Subject:- finance Consider the following information regarding the performance of a money manager in a recent month. The table represents the actualreturn of each sector of the manager's portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, thebenchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.EquityBondsCashActual Return2.5%1.50.7The manager's return in the month isActual Weight0.30.5Required:a-1. What was the manager's return in the month? (Do not round intermediate calculations. Input all amounts as positive values.Round your answer to 2 decimal places.)Contribution of security selection%Contribution of asset allocationBencheark Weight%8.70.20.1a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positivevalues. Round your answer to 2 decimal places.)Index Return3% (S&P 500)1.8 (Barclay's Aggregate)0.8Check my workb. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round youranswer to 2 decimal places. Negative amount should be indicated by a minus sign.)c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round youranswer to 2 decimal places. Negative amount should be indicated by a minus sign.)

The asset allocation and security selection of a fund manager and that of index are known. The…

Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager's 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 indices in column 4. Equity Bonds Cash Actual Return 2.5% 1.5 The manager's return in the month is 0.7 Actual Weight 0.3 0.5 0.2 Required: a-1. What was the manager's return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) Contribution of security selection Benchmark Weight 8.7 0.2 0.1 Contribution of asset allocation Index Return 3% (5&P 500) 1.8 (Barclay's Aggregate) a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) Check my wo b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...