The following is an extract from a micro attribution analysis of one of theinvestment managers of the Hiatus fund: Economic Portfolio WeightSectorPortfolio ReturnBenchmarkSectors (%)Weight (%)...

The following is an extract from a micro attribution analysis of one of theinvestment managers of the Hiatus fund:
Economic Portfolio WeightSectorPortfolio ReturnBenchmarkSectors (%)Weight (%) (%)Energy 8.38 7.72 3.55Financial 1 5 .48 13.42 1 .66Technology 17.89 22.01 3.21*The overall benchmark return was 2.32%.Using the above table, calculate and evaluate:
(i) The pure sector allocation return for the energy sector.Sector Benchmark Return (%)3.321 . 1 03 . 1 8
(ii) The within-sector selection return for the financial sector.
(iii) The allocation/selection interaction return for the technology sector.

May 26, 2022
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