Question

In: Finance

1A) In January, the portfolio’s technology selections returned 2.06% vs. 1.24% for the S&P 500 Technology...

1A)

In January, the portfolio’s technology selections returned 2.06% vs. 1.24% for the S&P 500 Technology sector. What is that an example of? _______

a. ) positive asset allocation/ sector selection

b. ) positive beta management

c. ) positive capitalization distribution

d. ) positive item selection

B

In January, the energy sector of the S&P 500 outperformed the whole S&P 500, up 10.93% vs. 2.72%. Our portfolio was slightly over weighted, 9.88% vs. 8.43%. How does that contribute to portfolio return vs. the S&P 500? _______

e. ) positive asset allocation/ sector selection

f. ) positive beta management

g. ) positive capitalization distribution

h. ) positive item selection

C

Which measure of portfolio risk can be calculated by doing a weighted average of each individual holding’s risk?

i. ) Beta

j. ) Standard Deviation

D

Matching which risk characteristic did Dr. Tyson say would best reduce performance risk against the S&P 500 index?

k. ) Capitalization breakdown

l. ) Growth and Value weightings

m. ) Sector exposures

n. ) Dividend yield breakdowns

Expert Solution

A. In January, the portfolio’s technology selections returned 2.06% vs. 1.24% for the S&P 500 Technology sector. What is that an example of d. ) positive item selection - since portfolio manager has put more weight than a benchmark in a security that performed well

B. In January, the energy sector of the S&P 500 outperformed the whole S&P 500, up 10.93% vs. 2.72%. Our portfolio was slightly over weighted, 9.88% vs. 8.43%. How does that contribute to portfolio return vs. the S&P 500? e. positive asset allocation/ sector selection since portfolio manager is overweight in a particular sector that has outperformed the benchmark

C. Which measure of portfolio risk can be calculated by doing a weighted average of each individual holding’s risk? i ) Beta - since formula for Portfolio beta is weighted average of betas of individual stocks

D. Matching which risk characteristic did Dr. Tyson say would best reduce performance risk against the S&P 500 index? l. ) Growth and Value weightings - since risks and returns would be matched

jeff jeffy answered 2 years ago

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