Consider the following information regarding the performance of a money manager in a recent month....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector of the managers 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 indexes in column (4). (1) Actual Return (2) Actual Weight (3) Benchmark Weight (4) Index Return Equity 2.8% 0.40 0.30 3.5% (S&P 500) Bonds 1.7 0.40 0.50 2.4 (Aggregate Bond index) Cash 1.5 0.20 0.20 1.5
What was the contribution of security selection to relative performance? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Contribution of security selection
%
c.
What was the contribution of asset allocation to relative performance?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Contribution of asset allocation
%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
