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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) Actual Actu Benchmark Index (C2) (C3) (C4) Market Return Equity 0.170 0.120 0.000 Weight Weight 0.800 0.200 0.000 0.400 0.600 0.000 Return 0.150 0.100 0.000 Bond as Estimate her excess return over the benchmark. Determine how much ofher superior or inferior performance relative to the benchmark is due to asset allocation and how much of i is due to security selection. Do the necessary computation and make your conclusion. 10 Marks]

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