Hi, Can someone please help with the solution to this questions coz I am not understanding some things: 1. How is the benchmark return, "Bmark Rtn" been calculated for each of the markets 2. What does the "Alt Rtn" column represent Thanks.
calcs Hi This is a weird one. The examiner didnt label the columns very clearly and its hard to work out what the alt rtn column is. In the ActEd ASET we do it the tried and tested way, but I dont think we ever derive numbers the same as are in that column. I am teaching all day at the moment, but when I get a mo, I will try to figure it out. The benchmark return is however an easier one to solve. For exanmple the US return: The portfolio value at the start, in pounds, was $250/1.9. At teh end it was $300 / 1.75. If you divide end by start you will get the required number. Hope this helps.
