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. | 0.29 | 0.24 | 22 | % | 15 | % | |||||||
Japan | 0.42 | 0.2 | 17 | 17 | |||||||||
U.S. | 0.23 | 0.22 | 10 | 13 | |||||||||
Germany | 0.06 | 0.34 | 7 | 15 | |||||||||
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
decimal places. Negative amount should be indicated by a minus
sign.)
c. Calculate the value added from her stock
selection ability within countries. (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...
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...
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...
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: Weight In Manager's Weight Manager's Return Return of Stock Index Country MSCI Index in Country for That...
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 Manager's Weight e.48 Manager's Return in Country 21% Weight In MSCI Index 0.24 0.37 0.36 0.03...
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: Manager's Return in Country Return of Stock Index for That Country 120 216 Country U.K. Japan U.S....
Problem 24-12 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 0.33 0.46 0.19 0.02 Manager's Weight...
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. Actual Return Actual Weight Benchmark Weight Index Return Equity 2.3 % 0.5 0.3 2.8% (S&P 500) Bonds 1.3 0.4...
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. Actual Return Actual Weight Benchmark Weight Index Return Equity 2 % 0.5 0.4 2.5% (S&P 500) Bonds 1.8 0.3...
Consider the following information regarding the performance of a money manager in a recent month. The table presents 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 indexes in column (4). (1) Actual Return (2) Actual Weight (3) Benchmark Weight (4) Index Return Equity 3.1% 0.70 0.50 3.9% (S&P 500)...
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 portfolie 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. Actual Return 2.2% 1.2 0.5 Actual Weight Benchmark Weight 0.4 0.3 0.3 Index Return Equity Bonds 0.6 2.7% (...