Question: eaucate the managers on the best methods for constructing a benchmark porno, how to choose the best benchmark, wnether the style of the fund under
eaucate the managers on the best methods for constructing a benchmark porno, how to choose the best benchmark, wnether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking For the sake of discussion, Jones put together some comparative two-year performance numbers that relate to Primo's current domestic funds under management and a potential benchmark. style Category Large-cap growth Mid-cap growth Small-cap growth Weight Benchmark 0.60 0.15 0.40 0.25 0.10 0.50 Peimo 278 24 20 Saturn Benchmark 168 26 As part of her analysis, Jones also takes a look at one of Primo's global funds. In this particular portfolio. Prima is invested 75% in Dutch stocks and 25% in British stocks. The benchmark is invested 50% in Dutch and and 50% in British stocks. On average, the British stocks outperformed the Dutch stocks. The euro appreciated 6% versus the U.S. dollar over the holding period while the pound depreciated 2% versus the dollar. In terms of the local return, Primo outperformed the benchmark with the Dutch Investments, but underperformed the index with respect to the British stocks. What is the within sector selection effect for each individual sector? (Round your answer to 1 decimal place negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Large-cap growth Mid-cap growth Smal-cap growth Total within sector selection 0.5 % 10.6) 34 0.23% (0.1)
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