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Question
62) In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes:
| Weight | Return | |||
| Bonds | 10 | % | 6 | % |
| Stocks | 90 | % | 16 | % |
The return on a bogey portfolio was 10%, calculated as follows:
| Weight | Return | |||||
| Bonds (Lehman Brothers Index) | 50 | % | 5 | % | ||
| Stocks (S&P 500 Index) | 50 | % | 15 | % | ||
The contribution of asset allocation across markets to the total excess return was
A) 1%.
B) 3%.
C) 4%.
D) 5%.
E) 6%
Answer
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Related questions
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