] Name at least one similarity and at least one difference between Style Analysi

] Name at least one similarity and at least one difference between Style Analysis and
Brinson-type Performance Attribution models.
3. [5 points] A share of stock is purchased at t=0 for $100. At the end of year (t=1) another share is
purchased for $130. At the end of year 2, both shares are sold for $150 each. At the end of years 1 and
2, the stock paid a $2.00 per share dividend.
(a) What is the time-weighted rate of return on this investment?
(b) What is the dollar-weighted rate of return on this investment?
(c) Was the market timing favorable to the cash flows in this scenario?
4. [5 points] Name two of the largest illiquid assets that are typically held by individual investors.
5. [5 points] Define and discuss survivorship bias and selection bias, and how they affect reported
returns of illiquid assets.
6. [5 points] Explain the difference between Brinson-Fachler and Brinson-Hood-Beebower performance
attribution models.

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