You are provided with information regarding the benchmark portfolio and the Alpha managed portfolio as follows: Benchmark Weightings are 50%; 30% and 20% for equity; bonds and cash respectively. Returns are 16%; 9% and 4% for equity; bonds and cash respectively. Alpha managed portfolio Weightings are 70%; 20% and 10% for equity; bonds and cash respectively. Returns are 19%; 11% and 6% for equity; bonds and cash respectively. Determine the performance attributed to asset allocation of the portfolio manager.
You are provided with information regarding the benchmark portfolio and the Alpha managed portfolio as follows: Benchmark Weightings are 50%; 30% and 20% for equity; bonds and cash respectively. Returns are 16%; 9% and 4% for equity; bonds and cash respectively. Alpha managed portfolio Weightings are 70%; 20% and 10% for equity; bonds and cash respectively. Returns are 19%; 11% and 6% for equity; bonds and cash respectively. Determine the performance attributed to asset allocation of the portfolio manager.
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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You are provided with information regarding the benchmark portfolio and the Alpha
Benchmark
- Weightings are 50%; 30% and 20% for equity; bonds and cash respectively.
- Returns are 16%; 9% and 4% for equity; bonds and cash respectively.
Alpha managed portfolio
- Weightings are 70%; 20% and 10% for equity; bonds and cash respectively.
- Returns are 19%; 11% and 6% for equity; bonds and cash respectively.
Determine the performance attributed to asset allocation of the portfolio manager.
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Critically analyze the performance of this manager and indicate whether you would consider this manager as an active or passive
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