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Consider the following information regarding the performance of a money manager during the month of October. The table below presents the actual return of each

Consider the following information regarding the performance of a money manager during the month of October. The table below presents the actual return of each sector of the manger's portfolio in Column (1), the fraction of the portfolio allocated to each sector in Column (2), the benchmark sector allocations in Column (3), and the returns of sector indexes in Column (4).

(1) Actual Return (2) Portfolio Weight (3) Benchmark Weight (4) Benchmark Return
Equity 3.0% 0.70 0.60 2.5%
Bonds 1.0% 0.20 0.30 1.2%
Cash 0.5% 0.10 0.10 0.5%

What is the contribution of the manager's asset allocation decisions to her October performance? a) .31% b) .44% c) .13%

d) 1.91%

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