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. \table[[,Actual,Benchmark],[Return,Actual Weight,Weight,Index Return,],[Equity,2.2%,0.4,0.5,2.7% esConsider the following information regarding the performance of a money manager in a recent month. The table represents the actualreturn of each sector of the manager's portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, thebenchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.ActualReturnActual WeightBenchmarkWeightIndex ReturnEquityBondsCash2.2%0.40.52.7%1.1%0.20.21.5%0.7%0.40.30.8%Required:a-1. What was the manager's return in the month?Note: Do not round intermediate calculations. Input amount as positive value. Round your answer to 2 decimal places.a-2. What was her overperformance or underperformance?Note: Do not round intermediate calculations. Input amount as positive value. Round your answer to 2 decimal places.b. What was the contribution of security selection to relative performance?Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by aminus sign.c. What was the contribution of asset allocation to relative performance?Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by aminus sign.a-1. The manager's return in the month isa-2.b.Contribution of security selectionC.Contribution of asset allocation%%%%

Actual return refers to the return that is earned over the investment amount by the investor during…

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Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

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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. \table[[,Actual,Benchmark],[Return,Actual Weight,Weight,Index Return,],[Equity,2.2%,0.4,0.5,2.7%

es
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
Bonds
Cash
2.2%
0.4
0.5
2.7%
1.1%
0.2
0.2
1.5%
0.7%
0.4
0.3
0.8%
Required:
a-1. What was the manager's return in the month?
Note: Do not round intermediate calculations. Input amount as positive value. Round your answer to 2 decimal places.
a-2. What was her overperformance or underperformance?
Note: Do not round intermediate calculations. Input amount as positive value. Round your answer to 2 decimal places.
b. What was the contribution of security selection to relative performance?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a
minus sign.
c. What was the contribution of asset allocation to relative performance?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a
minus sign.
a-1. The manager's return in the month is
a-2.
b.
Contribution of security selection
C.
Contribution of asset allocation
%
%
%
%

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