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 MSCI World Market Portfolio, 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: Country U.K. Japan U.S. Germany Weight In MSCI Index 0.25 0.38 0.35 0.02 Manager's Weight 0.5 0.2 0.26 0.04 Manager's Return in Country 21% 16 10 6 Return of Stock Index for That Country 13% 16 12 13. Required: a. Calculate the total value added of all the manager's decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
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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 her returns to the return on the MSCI World Market Portfolio, 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: Country U.K. Japan U.S. Germany Weight In MSCI Index Added value 0.31 0.44 0.21 0.04 Manager's Weight 0.28 0.2 0.2 0.32 Manager's Return in Country 22% 17 10 7 % Return of Stock Index for That Country a. Calculate the total value added of all the manager's decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) 15% 17 13 15A 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 MSCI World Market Portfolio, 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: Country U.K. Japan U.S. Germany Weight In MSCI Index Added value 0.32 0.45 0.2 0.03 Manager's Weight 0.3 0.2 0.19 0:31 Contribution of country allocation Manager's Return in Country 25% 17 10 7 Required: a. Calculate the total value added of all the manager's decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) Return of Stock Index for That Country 15% 17 56 13 15 b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2 decimal…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 MSCI World Market Portfolio, 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: Country Weight InMSCI Index Manager’sWeight Manager’s Returnin Country Return of Stock Indexfor That Country U.K. 0.23 0.46 21 % 13 % Japan 0.36 0.18 14 14 U.S. 0.37 0.28 10 12 Germany 0.04 0.08 6 13 a. Calculate the total value added of all the manager’s decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2…
- 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 MSCI World Market Portfolio, 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 Country U.K. Japan U.S. Germany Weight In MSCI Index 0.15 0.30 0.45 0.10 Added value Manager's Weight 0.30 Answer is complete but not entirely correct. 0.51 0.10 0.40 0.20 Contribution of country allocation % Manager's Return in Country 20% Required: a. Calculate the total value added of all the manager's decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) 15 10 5 0.11 Answer is complete but not entirely correct. Return of Stock Index for That Country 12% b. Calculate the value added (or subtracted) by her country…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 MSCI World Market Portfolio, 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: Country Weight In MSCI Index Manager's Weight Manager's Return in Country Return of Stock Index for That Country U.K. 0.26 0.33 22% 13% Japan 0.39 0.3 16 % 16% U.S. 0.34 0.25 10% 12% Germany 0.01 0.12 6% 13 % Required: Calculate the total value added of all the manager's decisions this period. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. Calculate the value added (or subtracted) by her country allocation decisions. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be…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 MSCI World Market Portfolio, 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: Return of Stock Index for That Weight In MSCI Manager's Country U.K. Index Weight Manager's Return in Country 0.23 0.46 21% Japan 0.36 0.18 14% U.S. 0.37 Germany 0.04 0.28 0.08 10% 6% Required: Country 13% 14% 12% 13% a. Calculate the total value added of all the manager's decisions this period. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. b. Calculate the value added (or subtracted) by her country allocation decisions. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should…
- 2. 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 his returns to the return on the MSCI World Market Portfolio, but he is free to hold stocks from various countries in whatever proportions he finds desirable. Results for a given month are contained in the following table: Country U.K. Japan U.S. Germany Weight in MSCI Index 0.15 0.30 0.45 0.10 Manager's Weight 0.30 0.10 0.40 0.20 Manager's Return in Country 25% 20% 15% 5% Return of Stock Index in Country 14% (FTSE100) 18% (TOPIX) 16% (S&P500) (DAX) 12% a. Calculate the total value added of all the manager's decisions this period. Calculate the value added (or subtracted) by the manager's country allocation b. decisions. ve added for su c. Calculate the value added from the manager's stock selection ability within countries. Confirm that the sum of the contributions to value added from his country allocation plus security selection…Investment advisors estimated the stock market returns for four market segments: computers, financial, manufacturing, and pharmaceuticals. Annual return projections vary depending on whether the general economic conditions are improving, stable, or declining. The anticipated annual return percentages for each market segment under each economic condition are as follows: Assume that an individual investor wants to select one market segment for a new investment. A forecast shows improving to declining economic conditions with the following probabilities: improving (0.2), stable (0.5), and declining (0.3). What is the preferred market segment for the investor, and what is the expected return percentage? At a later date, a revised forecast shows a potential for an improvement in economic conditions. New probabilities are as follows: improving (0.4), stable (0.4), and declining (0.2). What is the preferred market segment for the investor based on these new probabilities? What is the expected return percentage?Suppose that the index model for two Canadian stocks HD and ML is estimated with the following results: RHD =-0.03+2.10RM+eHD R-squared =0.7 RML =0.06+1.60RM+eML R-squared =0.6 σM =0.15 where M is S&P/TSX Comp Index and RX is the excess return of stock X. For portfolio P with investment proportion of 0.4 in HD and 0.6 in ML, calculate the systematic risk, non-systematic risk, and total risk of P. xx
- Suppose that a hedge fund uses the value factor strategy and rebalances the portfolio once a year at the end of April 2022.The investment universe corresponds to stocks in the S&P 500. In this case, is the following statement true or false: "When forming the value factor strategy in April 2022, we should compute the P/B ratio of S&P500 firms based on historical data from December 2021". O True O FalseThe manager of Quantitative International Fund uses EAFE as a benchmark. Last year's performance for the fund and the benchmark were as follows: Europe Australia Far East Multiple Choice 1.00% -1.00% Calculate Quantitative's stock selection return contribution. 3.00% EAFE's Weight 0.25% 0.30 0.10 0.60 EAFE's Return 10% 5% 15% Currency Selection E₁ / E₂ -1 10% -10% 30% Manager's Weight 0.25 0.25 0.50 Manager's Return 9% 8% 16%In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index. Equally weighted indexes are frequently used by financial researchers to measure portfolio performance. The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Douglas McDonnell Dynamics General International Rockwell Shares (millions) 1/1/22 540 455 290 $ 62 49 78 Price 1/1/23 $ 66 43 67 1/1/24 $ 81 57 81 a. Compute the rate of return on an equally weighted index of the three defense stocks for the year ending December 31, 2022. Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Index return % b. If the index value is set to 100 on January 1,…