Question: A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing

A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. Results for a given month are contained in the following table: Country U.K. Japan U.S. Germany Weight In MSCI Index 0.3 8.48 0.17 0.85 Manager's Weight 0.36 0.2 0.16 0.28 Manager's Return in Country 25% 17 10 7 Return of Stock Index for That Country 15% 17 13 15 a. Calculate the total value added of all the manager's decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.) Added value 263% b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round Intermediate calculations, Round you answer to 2 decimal places, Negative amount should be indicated by a minus sign.) 11% Activato Contribution of country alloration Next b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calcu answer to 2 decimal places. Negative amount should be indicated by a minus sign.) Contribution of country allocation % c. Calculate the value added from her stock selection ability within countries (Do not round intermediate calculatic answer to 2 decimal places. Negative amount should be indicated by o minus sign.) Contribution of stock selection 90
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