1) -1.31%2) 1.23%3) -1.18%4) 1.42%5) -1.08% What was the portfolio manager's contribution from active management?Asset class BenchmarkBenchmarkweight10%ManagerManagerweight20%40%40%returnreturnCash2.3%2.3%StocksBonds9.4%10.5%60%4.2%2.9%30%

We need to find the expected return of benchmark and manager. Expected return is the weighed average…

What was the portfolio manager's contribution from active management? Asset class Benchmark Manager Benchmark return 2.3% 9.4% 4.2% Manager weight 20% 40% return weight 10% 60% Cash 2.3% Stocks Bonds 10.5% 2.9% 30% 40%

What was the portfolio manager's contribution from active management? Asset class Benchmark Manager Benchmark return 2.3% 9.4% 4.2% Manager weight 20% 40% return weight 10% 60% Cash 2.3% Stocks Bonds 10.5% 2.9% 30% 40%

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

See similar textbooks

Similar questions

Nn.155. Subject :- Finance
Subject:- finance
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.)
Pran and Monem group has the following assets in portfolio and returns of the assets are following. Probability 28% assets Return of Pran Return on Monem Beverage steel Mills |-16% |-17% 26% 31% 18% Shipping linges 32% 27% 29% Consumers 27% 29% 25% a.Calculate the Return, Risk and CV of the portfolio and justify your decision for which portfolio to be selected, and interpret your findings. Ta
Sample Problem: Investment Market Rate 12% 10% ? 15% A B с D Beta 1.5 (.5) 1.0 ? CAPM ? ? 10% 12% If risk free rate is at 2%, supply the missing values of the summarized table for the portfolio of investment.
Pran and Monem group has the following assets in portfolio and returns of the assets are following. assets Return of Pran Return on Monem Probability Beverage -16% -17% 28% steel Mills 26% 31% 18% Shipping linges 32% 27% 29% Consumers 27% 29% 25% a.Calculate the Return, Risk and CV of the portfolio and justify your decision for which portfolio tobe selected, and interpret your findings.
Course : Portfolio Management
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. %
Be fast
25. Use the table to answer the question that follows. ROR Portfolio 1 Portfolio 2 Portfolio 3 -0.4% $2,400 2.6% $1,570 9.4% $3,340 -2.8% $1,250 14.8% $690 $840 $1,870 $395 $2,180 $130 $1,410 $975 $1,550 $1,180 $5,020 Calculate the weighted mean of the RORS for each portfolio. Based on the results, which list shows a comparison of the overall performance of the portfolios, from best to worst? Portfolio 1, Portfolio 2, Portfolio 3 Portfolio 2, Portfolio 3, Portfolio 1 Portfolio 3, Portfolio 1, Portfolio 2 Portfolio 3, Portfolio 2, Portfolio 1
QUESTION 12 Use the table below to answer questions 12 through 15. What is the portfolio tracking error? O A. 81.35 basis points OB. 86.35 basis points O C. 83.35 basis points D. 80.35 basis points Month January February March April May June July August September October November December Portfolio A's Return (%) 2.15 0.89 1.15 -0.47 1.71 0.10 1.04 2.70 0.66 2.15 -1.38 -0.59 Benchmark Index Return (%) 1.65 -0.10 0.52 -0.60 0.65 0.33 2.31 1.10 1.23 2.02 -0.61 -1.20
As the chief investment officer for a money management firm specializing in taxable individual investors, you are trying to establish a strategic asset allocation for two different clients. You have established that Ms. A has a risk-tolerance factor of 8, while Mr. B has a risk-tolerance factor of 27. The characteristics for four model portfolios follow: ASSET MIX Portfolio Stock Bond ER σ2 1 6 % 94 % 9 % 6 % 2 25 75 10 10 3 67 33 11 14 4 88 12 12 24 Calculate the expected utility of each prospective portfolio for each of the two clients. Do not round intermediate calculations. Round your answers to two decimal places. Portfolio Ms. A Mr. B 1 2 3 4 Which portfolio represents the optimal strategic allocation for Ms. A? Which portfolio is optimal for Mr. B? Portfolio represents the optimal strategic allocation for Ms. A. Portfolio is the optimal allocation for Mr. B. For Ms. A, what level of…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS