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Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector of
Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector of the manager's 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 indexes in column (4). What was the manager's return in the month? What was her over or underperformance? What was the contribution of security selection to relative performance? What was the contribution of asset allocation to relative performance
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