4. Discuss performance attribution analysis. What are the examples of allocation and selection decisions? How did you portfolio (group project) do on allocation and selection and why? Use the following information to calculate performance attribution to allocation and selection for a hypothetical fund. Please do not forget to switch the numbers to decimals before doing your calculations. Otherwise, your numbers may look too large. Discuss your findings. Sector Telecom Utilities Consumer Disc. Materials IT Consumer staples Industrials Financials Healthcare Energy Real Estate Total Weight (%) Benchmark 3 5 12 5 16 7 6 13 15 10 8 ? Return (%) Benchmark 1.25 -1.00 3.00 1.00 2.25 1.2 -1.5 0.5 2.3 0.25 0.5 ? Weight (%) Portfolio 2 5 8 5 21 9 12 10 13 10 5 ? Return (%) Portfolio 1.00 -2.00 2.50 1.25 2.50 0.75 -0.75 1.25 2.00 0.75 1.00
4. Discuss performance attribution analysis. What are the examples of allocation and selection decisions? How did you portfolio (group project) do on allocation and selection and why? Use the following information to calculate performance attribution to allocation and selection for a hypothetical fund. Please do not forget to switch the numbers to decimals before doing your calculations. Otherwise, your numbers may look too large. Discuss your findings. Sector Telecom Utilities Consumer Disc. Materials IT Consumer staples Industrials Financials Healthcare Energy Real Estate Total Weight (%) Benchmark 3 5 12 5 16 7 6 13 15 10 8 ? Return (%) Benchmark 1.25 -1.00 3.00 1.00 2.25 1.2 -1.5 0.5 2.3 0.25 0.5 ? Weight (%) Portfolio 2 5 8 5 21 9 12 10 13 10 5 ? Return (%) Portfolio 1.00 -2.00 2.50 1.25 2.50 0.75 -0.75 1.25 2.00 0.75 1.00
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 9MC: A good performance measurement system will include which of the following? A. short-term goals B....
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Transcribed Image Text:4. Discuss performance attribution analysis. What are the examples of allocation and selection
decisions? How did you portfolio (group project) do on allocation and selection and why?
Ușe the following information to calculate performance attribution to allocation and selection for a
hypothetical fund. Please do not forget to switch the numbers to decimals before doing your
calculations. Otherwise, your numbers may look too large. Discuss your findings.
田
Sector
Weight (%) Return (%) Weight (%) Return (%)
Benchmark Portfolio
1.25
Benchmark
Portfolio
Telecom
1.00
-2.00
2.50
1.25
3
Utilities
Consumer Disc.
Materials
-1.00
5
12
3.00
1.00
5
IT
16
2.25
21
2.50
Consumer staples
Industrials
Financials
Healthcare
Energy
Real Estate
1.2
0.75
6
-1.5
12
-0.75
13
0.5
10
1.25
15
2.3
13
2.00
0.25
0.5
10
10
0.75
8
5
1.00
Total
Attribution to Allocation
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