Question
In: Finance
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s 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 indices in column 4.
| Actual Return | Actual Weight | Benchmark Weight | Index Return | |||||||||
| Equity | 2 | % | 0.5 | 0.4 | 2.5% (S&P 500) | |||||||
| Bonds | 1.8 | 0.3 | 0.4 | 2 (Barclay’s Aggregate) | ||||||||
| Cash | 0.6 | 0.2 | 0.2 | 0.7 | ||||||||
a-1. What was the manager’s return in the month?
a-2. What was her overperformance or underperformance?
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jeff jeffy answered 2 years agoRelated Solutions
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual
Weight
Benchmark
Weight
Index
Return
Equity
2
%
0.5
0.4
2.5% (S&P
500)
Bonds
1.8
0.3...
Consider the following information regarding the performance of a money manager in a recent month. The...
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 manager’s 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
3.5%
0.40
0.30
4.3%
(S&P 500)...
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual Weight
Benchmark Weight
Index Return
Equity
2
%
0.5
0.4
2.5% (S&P 500)
Bonds
1.8
0.3...
Consider the following information regarding the performance of a money manager in a recent month. The...
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 manager’s 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
2.7%
0.70
0.50
3.2%
(S&P 500)...
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual
Weight
Benchmark
Weight
Index
Return
Equity
2.6
%
0.4
0.6
3.1% (S&P 500)
Bonds
1.5
0.2...
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual Weight
Benchmark Weight
Index Return
Equity
2.5
%
0.6
0.6
3% (S&P 500)
Bonds
1.5
0.1...
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual Weight
Benchmark Weight
Index Return
Equity
2.1
%
0.7
0.5
2.6% (S&P 500)
Bonds
1.1
0.1...
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual Weight
Benchmark Weight
Index Return
Equity
2.5
%
0.6
0.6
3% (S&P 500)
Bonds
1.5
0.1...
Consider the following information regarding the performance of a money manager in a recent month. The...
Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s 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 indices in column 4.
Actual Return
Actual Weight
Benchmark Weight
Index Return
Equity
2.6
%
0.6
0.6
3.1% (S&P 500)
Bonds
1.5
0.2...
Consider the following information regarding the performance of a money manager in a recent month. The...
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 manager’s 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 2.9% (S&P 500)...
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