Consider the following performance data for a portfolio manager: Benchmark Portfolio Index Portfolio Weight Weight Return Return Stocks 0.65 0.7 0.11 0.12 Bonds 0.3 0.25 0.07 0.08 Cash 0.05 0.05 0.03 0.025 a.Calculate the percentage return that can be attributed to the asset allocation decision. b.Calculate the percentage return that can be attributed to the security selection decision.
Consider the following performance data for a portfolio manager: Benchmark Portfolio Index Portfolio Weight Weight Return Return Stocks 0.65 0.7 0.11 0.12 Bonds 0.3 0.25 0.07 0.08 Cash 0.05 0.05 0.03 0.025 a.Calculate the percentage return that can be attributed to the asset allocation decision. b.Calculate the percentage return that can be attributed to the security selection decision.
Chapter6: Risk And Return
Section: Chapter Questions
Problem 1Q
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Consider the following performance data for a |
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Benchmark | Portfolio | Index | Portfolio | ||
Weight | Weight | Return | Return | ||
Stocks | 0.65 | 0.7 | 0.11 | 0.12 | |
Bonds | 0.3 | 0.25 | 0.07 | 0.08 | |
Cash | 0.05 | 0.05 | 0.03 | 0.025 |
a.Calculate the percentage return that can be attributed to the asset allocation decision.
b.Calculate the percentage return that can be attributed to the security selection decision.
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