Question: The World Value fund has value weights on asset classes and returns as given in the table below. There are four major asset classes: Europe,

The World Value fund has value weights on asset classes and returns as given in the table below. There are four major asset classes: Europe, Pacific, Emerging and North America (Canada and USA).The table also shows the weights and returns of the fund's benchmark portfolio, the World Index.

EuropePacificEmergingNorth AmericaCanadaUSA

World Value Fund Weight5 Index %22.2 2816.3 33.511.522

World Value Fund return % -3.4 4.512.8 3.452.6

World Index weight% 20 18.512 49.55.144.4

World Index return % 0.1 4.710.6 2.72.82.7

a) How did the World Value fund perform compared with the benchmark, over-performance or under-performance?

(b.) Provide a performance attribution of World Value's return in terms of its broad asset class allocation and stock selection relative to the benchmark.

(c.) Provide a specific performance attribution within the North America asset class. [Hint: Consider the North America portfolio only. Calculate the weights of Canada and USA in the North American portfolio.]

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