Question: A global equity manager is assigned to select stocks from a universe of large stocks throughout the w The manager will be evaluated by comparing
A global equity manager is assigned to select stocks from a universe of large stocks throughout the w The manager will be evaluated by comparing her returns to the return on the MSCI World Market Port but she is free to hold stocks from various countries in whatever proportions she finds desirable. Resu for a given month are contained in the following table: Country U.K. Japan U.S. Germany Weight In MSCI Index Added value 0.15 0.30 0.45 0.10 Manager's Weight 0.30 0.10 0.40 0.20 (1.30) % Contribution of country allocation Manager's Return in Country 20% Required: a. Calculate the total value added of all the manager's decisions this period. (Do not round intermed calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a n sign.) Contribution of stock selection 15 20 b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) % Return of Stock Index for That Country 12% 15 14 12 % c. Calculate the value added from her stock selection ability within countries. (Do not round interme calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a r sign.) A global equity manager is assigned to select stocks from a universe of large stocks throughout the w The manager will be evaluated by comparing her returns to the return on the MSCI World Market Port but she is free to hold stocks from various countries in whatever proportions she finds desirable. Resu for a given month are contained in the following table: Country U.K. Japan U.S. Germany Weight In MSCI Index Added value 0.15 0.30 0.45 0.10 Manager's Weight 0.30 0.10 0.40 0.20 (1.30) % Contribution of country allocation Manager's Return in Country 20% Required: a. Calculate the total value added of all the manager's decisions this period. (Do not round intermed calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a n sign.) Contribution of stock selection 15 20 b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) % Return of Stock Index for That Country 12% 15 14 12 % c. Calculate the value added from her stock selection ability within countries. (Do not round interme calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a r sign.)
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