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) (2) (3) (4) Actual Actual Benchmark Index Return Weight Weight Return Equity 15% 80% 60% 10% Bonds 10% 15% 30% 6% Cash 4% 5% 5% 1% What was the manager's return in the month? What was the benchmark's return in the 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) (2) (3) (4) Actual Actual Benchmark Index Return Weight Weight Return Equity 15% 80% 60% 10% Bonds 10% 15% 30% 6% Cash 4% 5% 5% 1% What was the manager's return in the month? What was the benchmark's return in the month?

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

Section: Chapter Questions

Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...

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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 2 2 4 Actual Weight Actual Return Benchmark Weight Benchmark Return Stocks 80% 6.8% 60% 13.2% Bonds 20% 4.6% 40% 6.6% What is the contribution of asset allocation to relative performance? Make sure to use the negative sign if your answer is negative!
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 2 2 4 Actual Weight Actual Return Benchmark Weight Benchmark Return Stocks 70% 19.7% 60% 14.5% Bonds 30% 11.6% 40% 8.9% By how much did the manager overperform or underperform the benchmark? (Answer is a percentage) Make sure to use the negative sign if your answer is negative!
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%
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 2 2 4 Actual Weight Actual Return Benchmark Weight Benchmark Return Stocks 70% 7.8% 60% 13.2% Bonds 30% 5.3% 40% 7.5% What is the contribution of security selection to relative performance? Make sure to use the negative sign if your answer is negative!
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% 0.70 0.60 2.5% (S&P 500) Bonds 1 0.20 0.30 1.2 (Barclay’s Aggregate) Cash 0.5 0.10 0.10 0.5 b. What was the contribution of security selection to relative performance? (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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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% 0.70 0.60 2.5% (S&P 500) Bonds 1 0.20 0.30 1.2 (Barclay’s Aggregate) Cash 0.5 0.10 0.10 0.5 Required: a-1. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
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 2.5% 0.6 0.6 3% (S&P 500) Bonds 1.5 0.1 0.1 1.7 (Barclay’s Aggregate) Cash 0.5 0.3 0.3 0.5 Required: a-1. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) b. What was the contribution of security selection to relative performance? (Do not round…
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 2.5% 0.6 0.6 3% (S&P 500) Bonds 1.5 0.1 0.1 1.7 (Barclay’s Aggregate) Cash 0.5 0.3 0.3 0.5 What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)
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 2.5 % 0.5 0.7 3% (S&P 500) Bonds 1.4 0.2 0.2 1.9 (Barclay’s Aggregate) Cash 0.8 0.3 0.1 0.9 a. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) b. What was the contribution of security selection to relative performance? (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…
Consider the following performance data for a portfolio manager: Benchmark Portfolio Index Portfolio Weight Weight Return Return Stocks 0.65 0.7 0.11 0.12 Bonds 0.3 0.25 0.07 0.08 Cash 0.05 0.05 0.03 0.025 a.Calculate the percentage return that can be attributed to the asset allocation decision. b.Calculate the percentage return that can be attributed to the security selection decision.
Question #4 Consider the following information regarding the performance of a money manager. 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 allocation in column (3), and the returns of the sector indexes in column 4. (1) Actual return (2) actual weight (3) Benchmark Weight (4) Index Return Equity 3% 0.60 0.6 2.9 (S&P 500) Bonds 1.5% 0.25 0.3 1.2 (Bond Index) Cash 0.6% 0.15 0.1 0.45 1). What was manager’s return in the month? What was the over or underperformance? Show your calculations. 2). What’s contribution of security selection to the relative performance? Show your calculations. Question #5 Lara Smith, CFA and CFP, has been reviewing current equity call prices for SemiCon and has noticed several discrepancies between several options prices…
(c)If you rank portfolio A, B and C according to theirbetas and return variances respectively, will the threeportfolios have same ranking? Can you provide economic reasons as to why the two rankings should be (in)consistent with each other? 1a) Individual computations Unilever PLC (ULVR.L) easyJet plc (EZJ.L) Vodafone Group Plc (VOD.L) BP p.l.c. (BP.L) Rio Tinto plc (RIO.L) Rolls-Royce Holdings plc (RR.L GlaxoSmithKline plc (GSK.L) The Royal Bank of Scotland Group plc (RBS.L) United Utilities Group PLC (UU.L) Legal & General Group Plc (LGEN.L) FTSE All Average 0.8195% -0.7525% -0.7816% -0.2164% 1.2769% -1.2955% 0.4389% -1.4360% 0.1905% -0.1855% -0.0710% Variance 0.2703% 1.3022% 0.5005% 0.4719% 0.6608% 0.9559% 0.2603% 0.8903% 0.2848% 0.5415% 0.1391% Standard deviation 5.1990% 11.4112% 7.0747% 6.8692% 8.1289% 9.7771% 5.1019% 9.4355% 5.3363% 7.3585% 3.7298% Beta 0.4755 1.6528 1.0369 1.1451 0.9749 1.3961 0.7123 1.5693 0.4809 1.2841 1.0000…