Question: The table below presents data on the performance of a portfolio, which consists of global investments, as well as the reference portfolio during the last

The table below presents data on the performance of a portfolio, which consists of global investments, as well as the reference portfolio during the last month.

Country Reference portfolio Weighting Rate Weighting Rate portfolio portfolio performance in each country Reference Index Performance in each country
Switzerland 0,15 0,30 20% 12%
Japan 0,30 0,10 15% 15%
USA 0,45 0,40 10% 14%
Germany 0,10 0,20 5% 12%

a. Calculate the total added value of the administrator's decisions for this period. b. Calculate the effect on the performance of allocation decisions in each country. c. Calculate the effect on performance from the selection of individual shares within countries.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!