INVESTMENTS(LL)W/CONNECT
INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
Question
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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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