Question: Please answer all part Ill. You are given the following information on the performance of a fund and on the market: Return on the portfolio

Please answer all part
Ill. You are given the following information on the performance of a fund and on the market: Return on the portfolio rp-16%; total risk of the portfolio ,-996; beta of the portfolio ,- 0.75, return on the market rm-10%; total risk of the market m_ 6%, and the nsk-free rate of interest r=4%. The client-desired beta is given as .-0.65. Decompose the portfolio's total return to identify the sources of the fund manager's performance. Interpret your results. [11 marks] IV. Consider an equity portfolio, which had a value of 105m at the beginning of April 2017. A further 8m was deposited into the portfolio halfway through the month (i.e. on April 15th). By the end of the month, the portfolio was valued at 120m (a) Calculate and interpret the unadjusted' return on the portfolio for the month. [2 marks] (b) Estimate and interpret the money weighted rate of return on the portfolio for the month. [4 marks] (c) If the portfolio was valued at 116m immediately before the 8m deposit was made on April 15th, calculate and interpret the time-weighted rate of return for the month. [4 marks] Ill. You are given the following information on the performance of a fund and on the market: Return on the portfolio rp-16%; total risk of the portfolio ,-996; beta of the portfolio ,- 0.75, return on the market rm-10%; total risk of the market m_ 6%, and the nsk-free rate of interest r=4%. The client-desired beta is given as .-0.65. Decompose the portfolio's total return to identify the sources of the fund manager's performance. Interpret your results. [11 marks] IV. Consider an equity portfolio, which had a value of 105m at the beginning of April 2017. A further 8m was deposited into the portfolio halfway through the month (i.e. on April 15th). By the end of the month, the portfolio was valued at 120m (a) Calculate and interpret the unadjusted' return on the portfolio for the month. [2 marks] (b) Estimate and interpret the money weighted rate of return on the portfolio for the month. [4 marks] (c) If the portfolio was valued at 116m immediately before the 8m deposit was made on April 15th, calculate and interpret the time-weighted rate of return for the month. [4 marks]
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