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8 pts Evelyn is a portfolio analyst at Morningstar. She is assessing how a portfolio offered by DE Partners has performed recently (YTD): Asset class
8 pts Evelyn is a portfolio analyst at Morningstar. She is assessing how a portfolio offered by DE Partners has performed recently (YTD): Asset class Actual return Actual weight Benchmark weight Index return Domestic equity 8.30% 60% 40% 7.70% Property 3.50% 5% 10% 2.20% Fixed income 1.10% 20% 20% 2.50% Cash 0.70% 15% 30% 0.80 a) Calculate the return of this portfolio over this period. [1 mark] b) Explain whether DE Partners over- or under-performed compared to their benchmark. What was the amount of over- or under-performance? [3 marks] c) Determine the contribution of asset allocation and security selection to the relative performance of this portfolio. [4 marks]
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