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16. The investment portfolio of Saver Mutual Fund consists of the following asset classes with the returns for each asset class over an investment period:

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16. The investment portfolio of Saver Mutual Fund consists of the following asset classes with the returns for each asset class over an investment period: Asset Class Weight Return Equity 0.80 15% Bonds 0.20 5% During the investment period, the return on a benchmark portfolio was calculated from the following information. Asset Class Weight Return Equity (S&P500 Index) 0.50 17% Bonds (Lehman Brothers Index) 0.50 5% a) Calculate the contribution of asset allocation across markets to the Saver Mutual Fund's total excess return over the total return of the benchmark portfolio. b) Calculate the contribution of security selection to the Saver Mutual Fund's total excess return over the total return of the benchmark portfolio

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