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A money manager's performance in a recent month is presented in the table below. Actual Return of Manager's Portfolio Actual Weight of Manager's Portfolio Benchmark
A money manager's performance in a recent month is presented in the table below. Actual Return of Manager's Portfolio Actual Weight of Manager's Portfolio Benchmark Weight Index Return Equity 2.1 0.5 0.6 2.6 (S&P 500) 2.3 (Barclay's Aggregate) Bonds 1.9 0.1 0.3 Cash 0.6 0.4 0.1 0.7 (T-Bills) a. What was the manager's return in the month? What was her overperformance or underperformance? (3 marks) b. What was the contribution of security selection to relative performance? (4 marks) c. What was the contribution of asset allocation to relative performance? (4 marks)
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