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Based on the data below, what was the portfolio's out- or underperformance due to asset allocation? Benchmark weight Portfolio weight stocks 0.5 0.6 bonds 0.5
Based on the data below, what was the portfolio's out- or underperformance due to asset allocation?
Benchmark weight | Portfolio weight | |
stocks | 0.5 | 0.6 |
bonds | 0.5 | 0.4 |
Benchmark return | Portfolio return | |
stocks | -5% | 5% |
bonds | 7% | 14% |
Calculate the portfolio's out- (or under-) performance due to asset allocation!
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