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6. Consider the performance (return) of Fun Mutual Fund and the benchmark portfolio as well as their weights as shown below. The table presents the

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6. Consider the performance (return) of Fun Mutual Fund and the benchmark portfolio as well as their weights as shown below. The table presents the actual return of each sector of the manager's portfolio in column Cl, the fraction of the portfolio allocated to each sector in column C2, the benchmark sector allocations in column C3, and the returns of sector indexes in column C4. (CI) (C2) (C3) Actual Actual Benchmark Index (C4) Market Return Weight Weight Return Equity 0.170 0.800 0.400 Bond 0.120 0.200 0.600 Cash 0.000 0.000 0.000 0.150 0.100 0.000 Estimate her excess return over the benchmark. Determine how much of her superior or inferior performance relative to the benchmark is due to asset allocation and how much of it is due to security selection. Do the necessary computation and make your conclusion. [10 Marksl

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