Question

In: Finance

Considering the following information regarding the performance of a portfolio manager in a recent quarter. Manager’s...

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.

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE


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