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Consider the below information that describes the annual performance of a manager's entire portfolio and the benchmark portfolio. What is the contribution of asset allocation
Consider the below information that describes the annual performance of a manager's entire portfolio and the benchmark portfolio.
What is the contribution of asset allocation to the manager's relative performance?
Manager Return | Manager Allocation | Benchmark Return | Benchmark Allocation | |
Asset Class A | 4% | 0.8 | 8% | 0.8 |
Asset Class B | 7% | ? | 1% | ? |
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