Tell me how many calculations are required in this (simple) question?

[cebrach]

From Live Mock Schweser: Q7, part A
Calculate the value added for the last 12 month’s to the foundation portfolio over and above what could have been earned with a passive strategic allocation and what portion of that value added was due to the individual manager. Show your calculations.
My interpretation: I am seeing that they are asking for two calculations. 1) the return above a passive strategic allocation, and 2) the portion of that is attributed to the value added manager.
What is your interpretation? Have you done this question? If yes, would you share your results?

 

[tgile512]

Its really only one calculation, just add benchmarks, investment managers, and allocation effects to get the active results. The investment manager figure is the value added due to the individual manager.

 

[verse214]

It’s asking for two calculations.
The passive strategic asset allocation first which is the asset contribution plus the risk free rate, and then the manager effect which is another calculation.

 

[verse214]

tgile512 wrote:
Its really only one calculation, just add benchmarks, investment managers, and allocation effects to get the active results. The investment manager figure is the value added due to the individual manager.

This is wrong

 

[tgile512]

It is asking for the value over and above a passive strategy which is benchmarks, investment managers, and allocation effects. Of that value add, the amount coming from investment managers is simply the investment manager line item. I don’t have the live mock so I am not sure if there is anything else in the question but from what is stated above, I don’t see how it can be any more complicated than that.