(b) Use the following information regarding the performance of a fund manager in a recent month to answer the following questions. The table represents the actual return of each sector of the managers portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column

	Actual return	Actual weight	Benchmark weight	Index return
Equity	3.5%	0.40	0.70	6.5% (S&P 500)
Bond	4.5%	0.45	0.20	3.6% (Salomon index)
Cash	1.0%	0.15	0.10	0.5%

(iii) What was the contribution of asset allocation to relative performance? Confirm that the sum of selection and allocation contributions equals her total excess return relative to the benchmark.