Problem 5 You have collected the following information on sectoral allocations, benchmark and returns from the Haiti fund. Economic Sector Agriculture Capital goods Consumer Durables Energy Financial Technology Utilities Cash and Equivalents Portfolio + cash Portfolio Weight 6.77 8.52 36.22 5.24 18.53 14.46 9.22 1.04 100 A. Compute active returns Benchmark Portfolio Sector Returns Sector Weight 6.45 8.99 37.36 4.65 16.56 18.87 7.12 0.00 100 -0.82 -3.28 1.96 0.44 2.98 2.32 0.54 0.17 1.34 Benchmark Sector Returns -0.73 -4.34 1.98 0.24 2.22 -0.48 -0.42 0.56 B. Briefly discuss the manager's security selection skills in each of the sectors? C. Briefly discuss the manager's sector selection skills?
Problem 5 You have collected the following information on sectoral allocations, benchmark and returns from the Haiti fund. Economic Sector Agriculture Capital goods Consumer Durables Energy Financial Technology Utilities Cash and Equivalents Portfolio + cash Portfolio Weight 6.77 8.52 36.22 5.24 18.53 14.46 9.22 1.04 100 A. Compute active returns Benchmark Portfolio Sector Returns Sector Weight 6.45 8.99 37.36 4.65 16.56 18.87 7.12 0.00 100 -0.82 -3.28 1.96 0.44 2.98 2.32 0.54 0.17 1.34 Benchmark Sector Returns -0.73 -4.34 1.98 0.24 2.22 -0.48 -0.42 0.56 B. Briefly discuss the manager's security selection skills in each of the sectors? C. Briefly discuss the manager's sector selection skills?
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
Problem 1PS
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Transcribed Image Text:Problem 5
You have collected the following information on sectoral allocations, benchmark and
returns from the Haiti fund.
Benchmark
Sector
Portfolio
Benchmark
Sector
Weight
6.45
8.99
37.36
Economic Sector
Portfolio
Sector
Returns
Weight
Returns
-0.73
-4.34
1.98
-0.82
Agriculture
Capital goods
6.77
8.52
-3.28
1.96
36.22
Consumer
Durables
Energy
Financial
0.24
2.22
-0.48
-0.42
5.24
0.44
4.65
16.56
Technology
Utilities
Cash and
18.53
14.46
9.22
1.04
2.98
2.32
0.54
0.17
18.87
7.12
0.00
Equivalents
Portfolio + cash
100
100
1.34
0.56
A. Compute active returns
B. Briefly discuss the manager's security selection skills in each of the sectors?
C. Briefly discuss the manager's sector selection skills?
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