Weight In MSCI Country U.K. Index Manager's Weight Manager's Return in Country Index for That Country 0.22 0.44 21% 13% Japan 0.35 0.23 14% 14% U.S. Germany 0.38 0.05 0.29 10% 12% 0.04 6% 13% Required: 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 be indicated by a minus sign. c. Calculate the value added from her stock selection ability within countries. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. a. Added value %

Weight In MSCI Country U.K. Index Manager's Weight Manager's Return in Country Index for That Country 0.22 0.44 21% 13% Japan 0.35 0.23 14% 14% U.S. Germany 0.38 0.05 0.29 10% 12% 0.04 6% 13% Required: 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 be indicated by a minus sign. c. Calculate the value added from her stock selection ability within countries. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. a. Added value %

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 2IEE

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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 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 Added value 0.21 0.34 0.39 0.06 Manager's Weight 0.42 0.2 0.3 0.08 Contribution of country allocation Manager's Return in Country 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.) Contribution of stock selection 21% 14 10 5 b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative…
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…
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 15
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 0.25 0.38 0.35 0.02 Manager's Weight 0.5 0.2 0.26 0.04 % Contribution of country allocation 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.) Manager's Return in Country ΕΝ
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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…
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