A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager willbe evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks fromvarious countries in whatever proportions she finds desirable. Results for a given month are contained in the following table:CountryU.K.JapanU.S.GermanyWeight InMSCI IndexAdded value0.250.380.350.02Manager'sWeight0.50.20.260.04%Contribution of country allocationRequired: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.)Manager's Returnin Country< Prev21%16106b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations.Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)%Return of StockIndexfor That Country13%1612133 of 20Next >ΕΝ

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.)

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.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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…
Bhupatbhai
"Bein g a newly appointed analyst at Credit Suiss e, one of your prime role is to facilitate the Global head of valuation in providing detailed and timely analysis. The next meeting is beingg scheduledd for the up coming Saturdayy, and you are required to calculat e the price of a few stocks and provide their valuations. The information is mentioned below": What would be the expected price of TVC stock today, given the streams of future dividends of $4 for next 3 years, having ZERO growth rate, and 10% required rate of return? The Walgreens BossoTTs Alliance Company has recently paid dividend D0 = $3, and growth is expected to remain 5% throughout. The required rate of return is 10%. Calculate dividend streams for the next 2 years, and their PVs? You have forecasted NICIE dividends of $5, $5.70, and $5.95 over the next three years respectively. After the end of three years the anticipated selling market price of NICIE will be $135. What is NICIE stock price provided a 7% expected…
Neha is an analyst at a wealth management firm. One of her clients holds a $7,500 portfolio that consists of four stocks. The investment allocation in the portfolio along with the contribution of risk from each stock is given in the following table: Stock Investment Allocation Beta Standard Deviation Atteric Inc. 35% 0.750 0.53% Arthur Inc. 20% 1.400 0.57% Li Corp. 15% 1.300 0.60% Transfer Fuels Co. 30% 0.300 0.64% Neha calculated the portfolio’s beta as 0.828 and the portfolio’s expected return as 8.55%. Neha thinks it will be a good idea to reallocate the funds in her client’s portfolio. She recommends replacing Atteric Inc.’s shares with the same amount in additional shares of Transfer Fuels Co. The risk-free rate is 4.00%, and the market risk premium is 5.50%. 1. According to Neha’s recommendation, assuming that the market is in equilibrium, how much will the portfolio’s required return change? 0.86% 0.67% 1.07% 0.99%…
Mr. Ota is an analyst for a large pension fund and he has been assigned the task of evaluating two different external portfolio managers (K and C). He considers the following historical average return, standard deviation, and CAPM beta estimates for these two managers over the past five years: Actual Average Standard deviation Portfolio Beta Return Manager K Manager C 7.80% 10.05% 0.75 12.0% 15.50% 1.45 Additionally, Mr. Ota estimate for the risk premium for the market portfolio is 5.40% and the risk-free rate is currently 2.50%. a. For both Managers K and C, calculate the expected return using the CAPM. Express your answers to the nearest basis point (i.e., xX.XX%)
The Standard and Poor's 500 is an index that include 500 of the best US companies and is based on the price of the stocks of said companies. Select one: True False
A UK investor buys $1 million of UK stocks in a portfolio with beta 1.2 with respect to the UK market index, and $2 million of US stocks in a portfolio with beta 0.8 w.r.t. with respect to the US market index. Suppose the FTSE 100, S&P 500 and £/$ volatilities are 15%, 10% and 35% respectively, and their correlations are: %UK−US = 0.7, %UK−£/$= 0.4 and %US−£/$= 0.5. Calculate the VaR due to each market risk factor and then aggregate this into (a) the equity VaR and (b) the total systematic VaR. For each VaR figure apply the normal linear model and use 99% confidence (i.e. α = 1%) and h = 10 days for the risk horizon. Express all your answers in $.
quiz 8-20
An analyst is studying the movement of the stock Philippines. His research and came up with a different rates of return for Philippines, 25% for strong and 10% for weak economic scenarios. Based on the latest economic outlook, the probability of having a strong, normal, and weak economy, are 30%, 50%, and 20%, respectively. The total expected return of Philippines stock is 17% considering the various probabilities. Determine the rate of return of Philippines if the economy turns normal.
The stock market data given by the following table. Telmex Mexico World Correlation Coefficients Telmex 1.00 Equity cost Mexico 0.90 1.00 World 0.60 0.75 1.00 % SD (%) 18 15 10 R (%) ? The above table provides the correlations among Telmex, a telephone/communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations (SD) of returns and the expected returns (R). The risk-free rate is 6%. 14 12 Suppose now that Telmex has made its shares tradable internationally via crosslisting on the NYSE. Again using the CAPM paradigm, estimate Telmex's equity cost of capital. (Do not round intermediate calculations. Round your answer as a percent rounded to 2 decimal places.)
Kelli Blakely is a portfolio manager for the Miranda Fund, a core large-cap equity fund. The benchmark for performance measurement purposes is the S&P 500. Although the Miranda portfolio generally mirrors the asset class and sector weightings of the S&P, Blakely is allowed a significant amount of leeway in managing the fund. Blakely was able to produce exceptional returns last year (as outlined in the table below) through her market timing and security selection skills. At the outset of the year, she became extremely concerned that the combination of a weak economy and geopolitical uncertainties would negatively impact the market. Taking a bold step, she changed her market allocation. For the entire year her asset class exposures averaged 50% in stocks and 50% in cash. The S&P's allocation between stocks and cash during the period was a constant 97% and 3%, respectively. The risk-free rate of return was 2%. One-Year Trailing Returns Miranda Fund 10.2% 37% Return Standard deviation Beta…

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