Use this info to answer question 10, pleasedon't answer 8: Use the followinginformation to answer questions 8-10. Ina particular year, the Pontipines Fundearned a return of 1% by making thefollowing investments in asset classes: Thereturn on a bogey portfolio was 2%,calculated from the following information:The total abnormal return on thePontipines Fund's managed portfolio was:A) - 1.80% B) -1.00% C) 0.80% D) 1.00% 10) The contribution of selectionwithin markets to the Pontipines Fund'stotal abnormal return was: A) -1.80% B) -1.00% C) 0.80% D) 1.00% Use the following information to answer questions 8-10. In a particular year, the Pontipines Fundearned a return of 1% by making the following investments in asset classes:BondsStocksWeight20%80%Return5%0%The return on a bogey portfolio was 2%, calculated from the following information:Weight Return50%5%50%-1%Bonds (Bloomberg Barclays Aggregate Bond Index)Stocks (S&P 500 Index)8) The total abnormal return on the Pontipines Fund's managed portfolio was:A) -1.80%B) -1.00%C) 0.80%D) 1.00%

Portfolio fund refers to the amount that has been pooled by collecting money from several investors…

Answered: Use this info to answer question 10,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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d. DN Answer is (C) 2. You are an advisor reviewing fund managers performance over the last year. Your records indicate that government bonds have returned 5% over the period. You have also obtained the following information: Return Standard deviation Beta Market portfolio 0.148 0.52 Fund manager W 0.148 0.36 0.18 Fund manager X 0.160 0.34 0.16 Fund manager Y 0.114 0.34 2.60 Fund manager Z 0.158 0.56 1.80 Given the information above, which fund manager's performance shows it lies on the Capital Market Line? a. Fund manager W. b. Fund manager X. c. Fund manager Y. d. Fund manager Z.
Fund F has been investing in stocks and bonds. You are evaluating the performance of Fund F by comparing its performance with the performance of an appropriate benchmark portfolio B. The performance and weights of F and B over the last year are given in the table below: Asset Class Weight in F Weight in B 0.6 Stocks 0.5 Bonds 0.5 Attribute the performance of Fund F against benchmark portfolio B in the stock class. What is the attribution due to the asset allocation in the stock class? What is the attribution due to the security selection in the stock class? 0.4 Return from F O a. -0.005, -0.008 O b. 0.003; 0.004 O c. 0.012, 0.008 O d. 0.008; 0.012 10% Return from B 3% 8% 5%
Investor has had the following returns in the Magic Fund for the past 4 years: 15%, 25%, -30%, 18%. c) State whether the annual geometric return (assume positive) should be higher, lower, or the same as the annual arithmetic return. Neither calculation nor explanation is necessary. d) State which measure, annual arithmetic return or annual geometric return, better represents how an investment performed over time. Neither calculation nor explanation is necessary.
In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the market index are given for comparison. 2 3 4 Fund -1.5 +24.1 +42.0 +11.0 +0.5 Market index -0.6 +17.0 +31.5 +10.0 -0.4 a. Calculate (a) the average return on both the Fund and the index, and (b) the standard deviation of the returns on each. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Did Ms. Sauros do better or worse than the market index on these measures? Mesozoic Fund Market Portfolio Return Return Average return а. Standard deviation Did Ms. Sauros do better or worse than the b. market index on these measures?
An investor is evaluating the historical performance of an investment fund. The following annual returns are provided to the investor: Fund Value Year 0 $260 Year 1 286 Year 2 328 Year 3 315 Year 4 310 Year 5 305 Required: a. Calculate the investment returns for each year. b. Compute the arithmetic mean return. c. Calculate the geometric mean return.
You wish to evaluate which of the two equity funds delivered a better risk adjusted return in terms of Sharpe ratio with the risk free rate currently at 1.58% UIT Fund Fund Return Standard Deviation Equity Fund A 8.60% 20.12% Equity Fund B 8.91% 18.12% Calculate the Sharpe ratios for both equity funds A and B and state which fund had superior risk-adjusted performance during this period, as measured by the Sharpe ratio
A fund starts the year with NAV 46 per share. Over the year, the fund pays out income of 2.5 per share and capital gains distributions of 2.5 per share. Assets in the portfolio grew (shrank) by -0.0025, and an expense ratio of 0.014 is charged at the end of the year.. What is the rate of return on the fund? (Hint: calculate NAV1 first) O 0.0969 O 0.1076 O 0.1002 O 0.0877 O 0.0922
I need someone to check my answer In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic fund. Rates of return on the market index are given for comparison Year Fund Return (%) Standard deviation mean Deviation 2 Market index return (%) Standard Deviation (Mean) Deviation2 1 -1.4 -16.52 272.91 -0.5 -11.8 139.24 2 24.0 8.88 77.44 16.0 4.7 22.09 3 41.9 26.78 717.17 31.4 20.1 404.01 4 10.9 -4.22 17.81 9.9 -1.4 1.96 5 0.2 -14.92 222.61 -0.3 -11.6 134.56 TOTAL 75.6 1,307.94 56.5 701.86 AVERAGE 15.12 261.59 11.3 140.37 SD 16.17 11.85 Calculate The average return on Mesozoic Fund Return and Market Portfolio Return Fund return = (-1.4+24+41.9+10.9+0.2)/5 = 15.12 Market index return = -0.5+16+31.4+9.9+ (-0.3)]/5 =…
You are an analyst for a large public pension fund and you have been assigned the task of evaluating two different extermal portfolio managers (Y and Z). You consider the following historical average retum, standard deviation, and CAPM beta estimates for these two managers over the past five years: Portfollo Actual Avg. Return Standard Devlation Beta Manager Y 11.30 96 13.20 96 1.20 Manager Z 8.00 96 7.80 96 0.90 Additionally, your estimate for the risk premium for the market portfolio is 4.00 percent and the risk-free rate is currently 5.00 percent. a. For both Manager Y and Manager Z, calculate the expected returm using the CAPM. Round your answers to two decimal places. Manager Y: 9% Manager Z: 9%
You are an advisor reviewing fund managers performance over the last year. Your records indicate that government bonds have returned 5% over the period. You have also obtained the following information: Return Standard deviation Beta Market portfolio 0.148 0.52 Fund manager W 0.148 0.36 0.18 Fund manager X 0.160 0.34 0.16 Fund manager Y 0.114 0.34 2.60 Fund manager Z 0.158 0.56 1.80 Given the information above, which fund manager’s performance shows it lies on the Capital Market Line? Fund manager W. Fund manager X. Fund manager Y. Fund manager Z.
You are an advisor reviewing fund managers performance over the last year. Your records indicate that government bonds have returned 5% over the period. You have also obtained the following information: Return Standard deviation Beta Market portfolio 0.148 0.52 Fund manager W 0.148 0.36 0.18 Fund manager X 0.160 0.34 0.16 Fund manager Y 0.114 0.34 2.60 Fund manager Z 0.158 0.56 1.80 Given the information above, which fund manager’s performance shows it lies on the Capital Market Line? A. Fund manager W. B. Fund manager X. C. Fund manager Y. D. Fund manager Z.
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