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Sept 2016

R

rlsrachaellouisesmith

Ton up Member
Hi

Q7)(i)
Can you confirm that the sector selection on cash in year 2 is actually -0.53% not -0.47%?

Also in the revision booklet solutions it shows the sector selection profit by sub asset class, but this is not needed for the question as it specifies not by subclass, can you confirm?

Thank you
 
Th ActEd ASET and revision booklets seem to have the cash sector selection at -0.47% for year 2, using both the first and the second method that are shown in the ASET.
The question asks for stock select for equity and bonds, but since there are only three high-level sectors, the cash stock selection falls out as a biproduct, which is why it appears in the ASET solution.
 
Hi Colin

I don't have the ASET only the revision booklets and it is not clear why it is -0.47%. Please can you explain? I get 0.53% working backwards as sector selection outperformance is -0.37% and sector selection for equities is 0.02% and for bonds .14%.
Thank you
 
I would not be able to do that as its quite complex, and there are many stage before the final result. If you have the revision booklets the answer is explained there. In my version its at the top of page 110, and the process starts on page 108. The answer for cash is show as -0.47% and unfortunately the revision booklets and ASET dont agree with you total stock selection figure or your equity figure in the post above.
 
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