Return of the manager for a month and decide it is over performance or under performance. Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

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Answer 1

Question

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

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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 The manager's return in the month is Actual Weight 0.3 0.5 0.2 % Benchmark Weight Required: 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.) % 0.7 0.2 0.1 Index Return 3% (S&P 500) 1.8 (Barclay's Aggregate 0.8 a-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.)

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 Actual Weight 2.5% 1.5 0.5 0.6 0.1 0.3 The manager's return in the month is Benchmark Weight % 0.6 0.1 0.3 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.) % Index Return 3% (S&P 500) 1.7 (Barclay's Aggregate) 0.5 (T-Bills) a-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.)

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 Actual Weight Benchmark Weight Index Return Equity 2% 0.70 0.60 2.5% (S&P 500) Bonds 1 0.20 0.30 1.2 (Barclay’s Aggregate) Cash 0.5 0.10 0.10 0.5 Required: 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.) a-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.)

Answer 2

Question

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Expert Solution & Answer

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Answer 3

Question

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Expert Solution & Answer

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Answer 4

Question

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Expert Solution & Answer

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Answer 5

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Answer 6

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

Answer 7

Chapter 24, Problem 11PS

A

Summary Introduction

To calculate: Return of the manager for a month and decide it is over performance or under performance.

Introduction: Return of manager is decided by the difference of the B’s return and actual return. If the difference is positive then it will be under performance and if it is negative then it will be over performance.

Answer 8

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

Answer 9

B

Summary Introduction

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

Answer 10

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Answer 11

C

Summary Introduction

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 24 - Prob. 1PS Ch. 24 - Prob. 2PS Ch. 24 - Prob. 3PS Ch. 24 - Prob. 4PS Ch. 24 - Prob. 5PS Ch. 24 - Prob. 6PS Ch. 24 - Prob. 7PS Ch. 24 - Prob. 8PS Ch. 24 - Prob. 9PS Ch. 24 - Prob. 10PS

Solution Summary: The author explains how the return of the manager is determined by the difference of B's return and actual return.

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

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Chapter 24 Solutions

Solution Summary: The author explains how the return of the manager is determined by the difference of B's return and actual return.

To calculate: Security selection’s contribution relative to the performance. Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

To calculate: Total contribution of relative performance. Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.

Want to see the full answer?

Chapter 24 Solutions

To calculate: Security selection’s contribution relative to the performance.

Introduction: The performance is the product of the excess weight and return of index. The value is depending on the equity, cash, and bond values.

To calculate: Total contribution of relative performance.

Introduction: The relative performance is the sum of long cap growth, mid cap growth and small cap growth.