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 80% 6.8% 60% 13.2% Bonds 20% 4.6% 40% 6.6% What is the contribution of asset allocation to relative performance? Make sure to use the negative sign if your answer is negative!
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 80% 6.8% 60% 13.2% Bonds 20% 4.6% 40% 6.6% What is the contribution of asset allocation to relative performance? Make sure to use the negative sign if your answer is negative!
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
Section: Chapter Questions
Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...
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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 | 80% | 6.8% | 60% | 13.2% |
Bonds | 20% | 4.6% | 40% | 6.6% |
What is the contribution of asset allocation to relative performance?
Make sure to use the negative sign if your answer is negative!
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