4. Instead of a passive ETF, we decided to hire an active manager whose objective is...

4. Instead of a passive ETF, we decided to hire an active manager whose objective is to outperform the Barclays Aggregate Index. Given what was just proposed to Advisory Board, what would be the VAM impact if during the first month of live performance the manager outperformed its benchmark by 1.2%? Show calculations.

5. Using the information in #4 above, what is the VAM impact in Allocation Tactics if our actual allocation to fixed income was 3 percentage points below policy? Show calculations.

Expert Solution

IMPACT OF VAM

The concept of VAM method is very useful for business which can add more values to their products and services.

1. Vam is tool for making comparison

2. It gives fair inferances of performances

3. VAM is very helpful for decesssion making analysis of a person

4. vam is based on accountability sysytem

5. It is a developmental scale of assement

6. help to find out the impact of specific performance

jeff jeffy answered 2 years ago

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