Solution-Performance of a manager in 2020

Performance of a manager in 2020

Assignment Help Finance Basics

Reference no: EM133060994

The following information relates to the performance of a manager in 2020.

	Actual return	Actual Weight	Benchmark weight	Return on the benchmark
Equity	7.45%	0.4	0.3	6.24%
Bonds	3.60%	0.3	0.5	3.40%
Cash	0.80%	0.3	0.2	0.80%

Details of investments in different sectors of the equity market are as follows:

Sector	Beginning of month weights (%)	S&P 500 (%)	Sector return (%)
Basic material	1.96	6.3	5.9
Business services	5.8	7.1	4.0
Capital goods	1.91	2.8	3.1
Consumer cyclical	18.47	18.5	7.8
Consumer non-cyclical	30.37	19.4	10.0
Credit sensitive	24.01	20.8	5.0
Energy	13.53	13.2	2.6
Technology	3.95	11.9	0.8

Using the above data, answer the following questions:

Has the manager over-performed or under-performance?
What was the contribution from sector allocation to security selection?
Confirm that the sum of contribution of security selection, sector selection and asset allocation is equal manager's total excess return in relation to the bogey.

Reference no: EM133060994

Questions Cloud

Underwood motors shares : The balance sheet for Larry underwood motors shows a book value of stockholders equity book value per share x total shares outstanding of $1,330,000. Furthermor

How much does she need to save per year : It is expected to cost $3,200,000 at the time it is built. If Scarlett saves annually for 24 years, how much does she need to save per year

What makes a good entrepreneur : For this discussion make sure that you pick a local person that is an entrepreneur. When I mean local I mean from your country. Make a profile on the person and

How much money will he have to do this in the future : He saves $80,000 annually for 7 years into an account that earns 3.9% annual interest. How much money will he have to do this in the future

Performance of a manager in 2020 : The following information relates to the performance of a manager in 2020.

What are the pros and cons of raising money : What are the pros and cons of raising money using internal financing mechanisms versus seeking funding through global capital markets via loans, commercial pape

Describe in detail four forecasting techniques : Describe in detail four forecasting techniques and identify which one you feel is the most appropriate.

Determine the cash position and gst paid at the end of march : At the end of the month $300 of office supplies had been used up. Determine the cash position and GST paid at the end of March

Downtown and suburban businesses : Timely Transport provides local delivery service for a number of downtown and suburban businesses. Delivery charges are based on distance and weight involved fo

User Account

All Pages

Performance of a manager in 2020

Reference no: EM133060994

Reference no: EM133060994

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT