Answer Happy

4 Please compute the Asset Weight Composite Return and Equally Weighted Dispersion Around Asset Weighted Composition Return for Table 1. (with accuracy up to 3 decimal places in %) Show the working clearly. Otherwise, zero mark will be given. Table 1 Year 0 1 2 3 4 Returns Client A 10% 10% 5% 15% Client B 8% 8% 8% 8% Client 8% 5% 5% 8% End of Period Assets ($ millions) Beginning Balance Client A 60 66.00 72.60 76.23 87.66 Client B 180 194.40 209.95 226.75 244.89 Client 240 259.20 272.16 285.77 308.63 TOTAL 480 519.60 554.71 588.75 641.18 Number of Portfolios 3 3 3 3 3 Asset Weighted Composite Return Equally Weighted Dispersion Around Asset Weighted Composite Return Year 1: Return = Dispersion = Year 2: Return Dispersion = Year 3: Return = Dispersion = Year 4: Return = Dispersion

1 2 Please compute the Asset Weight Composite Return and Equally Weighted Dispersion Around Asset Weighted Composition Return for Table 2. (with accuracy up to 3 decimal places in %). Note that Client C terminated the account at the end of Year 2 with balance of $272.16m. Show the working clearly. Otherwise, zero mark will be given. Table 2 Year 0 1 2 3 4 Returns Client A 10% 10% 5% 15% Client B 8% Client C 8% 5% End of Period Assets ($ millions) Beginning Balance Client A 60 66.00 72.60 76.23 Client B 180 194.40 209.95 226.75 244.89 Client C 259.20 272.16 519.60 554.71 302.98 332.55 Number of Portfolios 3 3 8% 8% 8% 87.66 240 TOTAL 480 3 3 3 2 2 Asset Weighted Composite Return Equally Weighted Dispersion Around Asset Weighted Composite Return Year 1: Return = same as Year 1 of Table 1 Dispersion = same as Year 1 of Table 1 Year 2: Return = same as Year 2 of Table 1 Dispersion = same as Year 2 of Table 1 Year 3: Return Dispersion Year 4: Return = Dispersion =