Question

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 indexes in column 4. Actual Return Actual Weight e.5 Benchmark Weight Equity Bonds Cash Index Return 2.8%(S&P/TSX Composite) .4 (FTSE TMX Universe) a-1. What was the manager's return in the month? (Round your answer to 2 decimal places. Input all amounts as positive values. Do not round intermediate calculations. Omit the "%" sign in your response.) The manager's return in the month is a-2. What was her overperformance or underperformance? (Round your answer to 2 decimal places. Input all amounts as positive values. Do not round intermediate calculations. Omit the "%" sign in your response.) (Click to select) O % b. What was the contribution of security selection to relative performance? (Round your answer to 2 decimal places. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Omit the "S" sign in your response.) Contribution of security selection

Answer 1

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2 L e 23 * 9 w @ v . * ENG 05:05 19-03-2070 25 AG125 i X for v z AA AB AC AD AE AF AG AH AI AJ AK a 125 126 128 129 130 BENCH MARK ACTUAL WEIGHT WEIGHT B (C-D) BENCH ACTUALMARK MANAGER INDEX EXCESS RETURN RETURN RETURN RETURN PERFORMANCE D BC AⓇD 2.30% 2.80% 1.15% 0.84% -0.50% 1.30% 1.40% 0.52% 0.28% -0.10% 0.50% 0.50% 0.05% 0.25% 0.00% 1.72% 1.37% CONTRIBUTION EXCESS CONTRIBUTION OF SECURITY WEIGHT OF ASSET SELECTION SELECTION B*(C-D) (B-A) D*(B-A) -0.250% 20% 0.560% -0.040% 20% 0.280% 0.000% -40% -0.200% -0.290% 0.640% 131 132 133 EQUITY 134 BOND 135 CASH 136 137 138 a-1 139a-2 140 b 141 C-1 30% 20% 50% 50% 40% 10% [ALL ANSWERS ARE ROUNDED TO 2 DECIMALS] MANAGER'S RETURN = OUTPERFORMANCE OF MANAGER = UNDERPERFORMANCE WITH SECURITY SELECTION = OUTPERFORMANCE WITH ASSET SELECTION = 1.72% 0.35% (1.72%-1.37%] -0.29% 0.64% 143 -2 YES 146 147 148 ... NPV real cfat merger country allocation amorti LOAN OPTIONS SPLIT VALUE OF SHARE HPR REAL RETURN EPS BEST PLAN EAC HIGH LOW Sheet1 S...