The following information relates to the performance of a manager in 2020.Benchmark weightReturn on the benchmarkActual returnActual Weight7.28%EquityBondsCash0.60.56.00%3.20%0.90%0.20.20.30.23.60%0.90%Details of investments in different sectors of the equity market are as follows:Beginning of month weights S&P 500 Sector returnSectorBasic materialBusiness servicesCapital goodsConsumer cyclicalConsumer non-cyclical| Credit sensitive1.966.306.95.807.107.01.918.804.18.4712.508.840.3719.4010.024.0120.805.013.20EnergyTechnology13.532.63.9511.900.6 Using the above data, answer the following questions:a. Has the manager over-performed or under-performed?b. What was the contribution of security selection to relative performance?c. What was the contribution of asset allocation to relative performance?d. What was the contribution from sector allocation to security selection?e. Confirm that the sum of contribution of security selection, sector selection and asset allocation isequal manager's total excess return in relation to the bogey.

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Using the above data, answer the following questions: a. Has the manager over-performed or under-performed? b. What was the contribution of security selection to relative performance? c. What was the contribution of asset allocation to relative performance? d. What was the contribution from sector allocation to security selection? e. Confirm that the sum of contribution of security selection, sector selection and asset allocation is equal manager's total excess return in relation to the bogey.

Using the above data, answer the following questions: a. Has the manager over-performed or under-performed? b. What was the contribution of security selection to relative performance? c. What was the contribution of asset allocation to relative performance? d. What was the contribution from sector allocation to security selection? e. Confirm that the sum of contribution of security selection, sector selection and asset allocation is equal manager's total excess return in relation to the bogey.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.5.2MBA: Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the...

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Subject:- finance
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