Problem 24-11Consider the following information regarding the performance of a money manager in a recent month. The table represents the actreturn 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.EquityBondsCashActual Return2.3%18.7Actual Weight0.30.30.4The manager's return in the month isBenchmark Weight%0.40.30.3a-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.)5.86 %Index Return2.8% (S&P 500)1.2 (Barclay's Aggregate)0.8 (T-Bills)a-2. What was her overperformance or underperformance? (Do not round intermediate calculations, Input all amounts as positivevalues. Round your answer to 2 decimal places.)

Manager return = Sum of (Actual Weight * Actual Return)Index return = Sum of (Benchmark Weight *…

Problem 24-11 Consider the following information regarding the performance of a money manager in a recent month. The table represents the ac 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. Equity Bonds Cash Actual Return Actual Weight 2.3% 0.3 1 0.3 8.7 0.4 Benchmark Weight 0.4 0.3 0.3 The manager's return in the month is Index Return 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.) 5.86 % 2.8% (S&P 500) 1.2 (Barclay's Aggregate) 0.8 (T-Bills) 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.)

Problem 24-11 Consider the following information regarding the performance of a money manager in a recent month. The table represents the ac 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. Equity Bonds Cash Actual Return Actual Weight 2.3% 0.3 1 0.3 8.7 0.4 Benchmark Weight 0.4 0.3 0.3 The manager's return in the month is Index Return 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.) 5.86 % 2.8% (S&P 500) 1.2 (Barclay's Aggregate) 0.8 (T-Bills) 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.)

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter5: Risk Analysis

Section: Chapter Questions

Problem 14PC: Refer to the financial state-ment data for Abercrombie Fitch in Problem 4.25 in Chapter 4. Exhibit...

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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. Actual Return Equity Bonds Cash 2% 1 0.5 Required: Actual Weight 0.70 0.20 0.10 Benchmark Weight 0.60 0.30 0.10 Index Return 2.5% (S&P 500) 1.2 (Barclay's Aggregate) 0.5 a-1. What was the manager's return in the month? Note: Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places. The manager's return in the month is % a-2. What was her overperformance or underperformance? Note: Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places. %
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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. Equity Bonds Cash Actual Return 2.5% 1.5 0.7 The manager's return in the month is Actual Weight 0.3 0.5 0.2 % Benchmark Weight 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.) % 0.7 0.2 0.1 Index Return 3% (S&P 500) 1.8 (Barclay's Aggregate 0.8 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. Equity Bonds Cash Actual Return 2.5% 1.5 0.7 Actual weight 0.3 0.5 0.2 Benchmark Weight 0.7 0.2 0.1 Index Return 3% (S&P 500) 1.8 (Barclay's Aggregate) 0.5 (T-Bills) 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.) The manager's return in the month is e-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. Equity Bonds Cash Actual Return Actual Weight 2.5% 1.5 0.5 0.6 0.1 0.3 The manager's return in the month is Benchmark Weight % 0.6 0.1 0.3 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.) % Index Return 3% (S&P 500) 1.7 (Barclay's Aggregate) 0.5 (T-Bills) 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.)
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…
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% 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. \table[[,Actual,Benchmark],[Return,Actual Weight,Weight,Index Return,],[Equity,2.2%,0.4,0.5,2.7%