A global equity manager is assigned to select stocks from a universe of large stocks throughout...

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Finance

A global equity manager is assigned to select stocks from auniverse of large stocks throughout the world. The manager will beevaluated by comparing her returns to the return on the MSCI WorldMarket Portfolio, but she is free to hold stocks from variouscountries in whatever proportions she finds desirable. Results fora given month are contained in the following table:
Country Weight In
MSCI Index Manager’s
Weight Manager’s Return
in Country Return of Stock Index
for That Country
U.K. 0.26 0.33 22 % 13 %
Japan 0.39 0.3 16 16
U.S. 0.34 0.25 10 12
Germany 0.01 0.12 6 13
a. Calculate the total value added of all themanager’s decisions this period. (Do not round intermediatecalculations. Round your answer to 2 decimalplaces. Negative amount should be indicated by a minussign.)
b. Calculate the value added (or subtracted) byher country allocation decisions. (Do not roundintermediate calculations. Round your answer to 2decimal places. Negative amount should be indicated by a minussign.)
c. Calculate the value added from her stockselection ability within countries. (Do not roundintermediate calculations. Round your answer to 2 decimal places.Negative amount should be indicated by a minus sign.)

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A global equity manager is assigned to select stocks from auniverse of large stocks throughout the world. The manager will beevaluated by comparing her returns to the return on the MSCI WorldMarket Portfolio, but she is free to hold stocks from variouscountries in whatever proportions she finds desirable. Results fora given month are contained in the following table:CountryWeight InMSCI IndexManager’sWeightManager’s Returnin CountryReturn of Stock Indexfor That CountryU.K.0.260.3322%13%Japan0.390.31616U.S.0.340.251012Germany0.010.12613a. Calculate the total value added of all themanager’s decisions this period. (Do not round intermediatecalculations. Round your answer to 2 decimalplaces. Negative amount should be indicated by a minussign.)b. Calculate the value added (or subtracted) byher country allocation decisions. (Do not roundintermediate calculations. Round your answer to 2decimal places. Negative amount should be indicated by a minussign.)c. Calculate the value added from her stockselection ability within countries. (Do not roundintermediate calculations. Round your answer to 2 decimal places.Negative amount should be indicated by a minus sign.)

Country	Weight In MSCI Index	Manager’s Weight	Manager’s Return in Country		Return of Stock Index for That Country
U.K.	0.26	0.33	22	%	13	%
Japan	0.39	0.3	16		16
U.S.	0.34	0.25	10		12
Germany	0.01	0.12	6		13