The table presents the actual return of each sector of the manager's portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column (4). 1 2 2
The table presents the actual return of each sector of the manager's portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column (4). 1 2 2
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The table presents the actual return of each sector of the manager's portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column (4).
| 1 | 2 | 2 | 4 | |
| Actual Weight | Actual Return | Benchmark Weight | Benchmark Return | |
| Stocks | 70% | 19.7% | 60% | 14.5% |
| Bonds | 30% | 11.6% | 40% | 8.9% |
By how much did the manager overperform or underperform the benchmark? (Answer is a percentage)
Make sure to use the negative sign if your answer is negative!
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