In: Finance
Considering the following information regarding the performance of a portfolio manager in a recent quarter.
Manager’s Return |
Manager’s Weight |
Market weight |
Market Return |
|
Stocks |
1% |
0.50 |
0.30 |
2% |
Bonds |
2% |
0.30 |
0.30 |
1.5% |
Marketable securities |
0.75% |
0.20 |
0.40 |
0.5% |
What is the market return of the portfolio in percentage?
What is the return of the manager's portfolio in percentage?
What is the Alpha (in percentage) of the manager's portfolio compared to benchmark (market)?
Identify the contributions (in percentage) of security selection to relative performance.
Identify the contributions (in percentage) of asset allocation to relative performance.