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1. A portfolio manager is considering two options for a benchmark index.The first is an absolute return based on a minimum return target of 9.5%

1. A portfolio manager is considering two options for a benchmark index. The first is an absolute return based on a minimum return target of 9.5% and the second is the median of the universe of US large-cap core equity managers. Which of the following properties of a return point Valid reference do these two options have?

Specified in advance

invertible

Measurable

unambiguous

2. You're trying to understand why your portfolio of top large-cap stocks underperformed its benchmark and perform a sector attribution analysis based on the past year:

Sector

Sectoral Returns

Portfolio weights

Reference weights

Information technology

10,75%

18,71%

19,06%

Consumer staples

12,31%

16,52%

16,10%

Energy

8,63%

9,38%

9,53%

Utilities

-3,92%

15,65%

14,87%

From this analysis, which sector is the main contributor to the underperformance of the core portfolio relative to its benchmark?

Energy

Utilities

Information technology

Consumer staples

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