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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 (2) Actual Benchmark (3) (4) Index Weight Return Weight 0.40 Return 3.5% (S&P 500) (Aggregate Bond index) 1.5 Equity 2.8% 0.30 Bonds 1.7 0.40 O.50 2.4 Cash 1.5 0.20 0.20 a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10% Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -0.45% Over- or underperformance a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10 % Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Over-or underperformance -O.45% b. What was the contribution of security selection to relative performance? Here "security selection" includes security selection from both equity and bond. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Contribution of security -0.56% selection c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -1.01% Contribution of asset allocation

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 (2) Actual Benchmark (3) (4) Index Weight Return Weight 0.40 Return 3.5% (S&P 500) (Aggregate Bond index) 1.5 Equity 2.8% 0.30 Bonds 1.7 0.40 O.50 2.4 Cash 1.5 0.20 0.20 a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10% Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -0.45% Over- or underperformance a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10 % Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Over-or underperformance -O.45% b. What was the contribution of security selection to relative performance? Here "security selection" includes security selection from both equity and bond. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Contribution of security -0.56% selection c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -1.01% Contribution of asset allocation

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 (2) Actual Benchmark (3) (4) Index Weight Return Weight 0.40 Return 3.5% (S&P 500) (Aggregate Bond index) 1.5 Equity 2.8% 0.30 Bonds 1.7 0.40 O.50 2.4 Cash 1.5 0.20 0.20 a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10% Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -0.45% Over- or underperformance
Transcribed Image Text: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 (2) Actual Benchmark (3) (4) Index Weight Return Weight 0.40 Return 3.5% (S&P 500) (Aggregate Bond index) 1.5 Equity 2.8% 0.30 Bonds 1.7 0.40 O.50 2.4 Cash 1.5 0.20 0.20 a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10% Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -0.45% Over- or underperformance
a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10 % Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Over-or underperformance -O.45% b. What was the contribution of security selection to relative performance? Here "security selection" includes security selection from both equity and bond. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Contribution of security -0.56% selection c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -1.01% Contribution of asset allocation
Transcribed Image Text:a-1. What was the manager's return in the month? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) 2.10 % Manager's return a-2. What was her over- or under-performance? (Enter a positive value for over- performance or a negative value (using a minus sign) for under-performance. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Over-or underperformance -O.45% b. What was the contribution of security selection to relative performance? Here "security selection" includes security selection from both equity and bond. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Contribution of security -0.56% selection c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) -1.01% Contribution of asset allocation
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