N
Nimisha
Member
Hi
For the stock selection of the equities, for Year 1, I am getting 0.625 x (9.92% - 8.67%) = 0.78% - the solution shows 1%. This is just the actual % invested x (actual return - benchmark return).
I am calculating the stock selection for bonds in a similar way and again, this is not working out. For Year 1 I have 0.325 x (2.9% - 4%).
For the sector asset allocation, now including the cash, I am also not getting the right answer. The numbers I have for Year 1 are: (0.625 - 0.6) x (8.67% - 6.8%) + (0.325 - 0.4) x (4% - 6.8%) + (0.05 - 0) x (0% - 6.8%) = -0.08%
But my answers don't match.Pls help.Also the Sector asset allocation ques of part 1 bullet point 3,does it mean we have to ignore cash?In the above calculation I have included cash but the ques states that btw equities and bonds.
For the stock selection of the equities, for Year 1, I am getting 0.625 x (9.92% - 8.67%) = 0.78% - the solution shows 1%. This is just the actual % invested x (actual return - benchmark return).
I am calculating the stock selection for bonds in a similar way and again, this is not working out. For Year 1 I have 0.325 x (2.9% - 4%).
For the sector asset allocation, now including the cash, I am also not getting the right answer. The numbers I have for Year 1 are: (0.625 - 0.6) x (8.67% - 6.8%) + (0.325 - 0.4) x (4% - 6.8%) + (0.05 - 0) x (0% - 6.8%) = -0.08%
But my answers don't match.Pls help.Also the Sector asset allocation ques of part 1 bullet point 3,does it mean we have to ignore cash?In the above calculation I have included cash but the ques states that btw equities and bonds.
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