(a) To calculate: The return of manager in the month and evaluating whether he is in under or over-performed. Introduction: Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Question

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Answer 1

Question

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

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Answer 2

Question

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

Expert Solution & Answer

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Answer 4

Question

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

Answer 6

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Answer 7

Chapter 18, Problem 11PS

Summary Introduction

(a)

To calculate:

The return of manager in the month and evaluating whether he is in under or over-performed.

Introduction:

Actual return means the return which is earned by the investor and for computing the actual return of portfolio, weighted average return should be calculated for returns of portfolio.

Answer 8

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Answer 9

Summary Introduction

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

Answer 10

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

Answer 11

Summary Introduction

(c)

To calculate:

The contribution of allocating asset to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and total return of benchmark portfolio and gets multiplied by difference of weight of manager portfolio and benchmark portfolio.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 18.1 - Prob. 1EQ Ch. 18.1 - Which fund would you choose if you were...Ch. 18.6 - Prob. 1EQ Ch. 18.6 - What would happen to the contribution of security...Ch. 18 - Prob. 1PS Ch. 18 - Is it possible for a positive alpha to be...Ch. 18 - Prob. 3PS Ch. 18 - Prob. 5PS Ch. 18 - 6. stock price and dividend history are as...Ch. 18 - Prob. 7PS

(b) To calculate: The contribution of selecting security to the relative performance Introduction: Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.

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Chapter 18 Solutions

(b)

To calculate:

The contribution of selecting security to the relative performance

Introduction:

Contribution of security selection is calculated by taking difference of return of index and manager's portfolio and gets multiplied by weight of manager portfolio.