Sum of all the value added of all managers. Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

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Answer 1

Question

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

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A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. Results for a given month are contained in the following table: Country Weight In MSCI Index Manager's Weight Manager's Return in Country Return of Stock Index for That Country U.K. 0.26 0.33 22% 13% Japan 0.39 0.3 16 % 16% U.S. 0.34 0.25 10% 12% Germany 0.01 0.12 6% 13 % Required: Calculate the total value added of all the manager's decisions this period. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign. Calculate the value added (or subtracted) by her country allocation decisions. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be…

A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. Results for a given month are contained in the following table: Country Weight InMSCI Index Manager’sWeight Manager’s Returnin Country Return of Stock Indexfor That Country U.K. 0.23 0.46 21 % 13 % Japan 0.36 0.18 14 14 U.S. 0.37 0.28 10 12 Germany 0.04 0.08 6 13 a. Calculate the total value added of all the manager’s decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2…

A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. Results for a given month are contained in the following table: Country U.K. Japan U.S. Germany Weight In MSCI Index Added value 0.31 0.44 0.21 0.04 Manager's Weight 0.28 0.2 0.2 0.32 Manager's Return in Country 22% 17 10 7 % Return of Stock Index for That Country a. Calculate the total value added of all the manager's decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) 15% 17 13 15

Answer 2

Question

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Answer 6

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

Answer 7

Chapter 24, Problem 12PS

A

Summary Introduction

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

Answer 8

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

Answer 9

B

Summary Introduction

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

Answer 10

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Answer 11

C

Summary Introduction

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Answer 12

Expert Solution & Answer

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

Sum of all the value added of all managers. Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

Solution Summary: The author explains how the value added of a portfolio is calculated by MSCI index and manager weight index.

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Want to see the full answer?

Chapter 24 Solutions

Sum of all the value added of all managers. Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

Solution Summary: The author explains how the value added of a portfolio is calculated by MSCI index and manager weight index.

To calculate: Sum of all the value added of all managers. Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

To calculate: Value added by country allocation. Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

To calculate: Value from the stock selection ability for all countries. Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.

Want to see the full answer?

Chapter 24 Solutions

To calculate: Sum of all the value added of all managers.

Introduction: Portfolio is a group of assets that are invested in stock market and managed by the investors. Expected return of portfolio is the sum of all the expected profit percentage respective of the portfolio weight.

To calculate: Value added by country allocation.

Introduction: Country allocation is depending upon the excess weight. Excess weight is depending upon the manager’s index and MSCI index value.

To calculate: Value from the stock selection ability for all countries.

Introduction: Stock selection ability is depending upon the country allocation. This value is calculated by the excess return and excess return is difference of manager’s return and benchmark return.