Question
In a particular year, a fund manager made the following investments in the following asset classes: Weight Return Bonds 40% 5% Stocks 60% 18% The
In a particular year, a fund manager made the following investments in the following asset classes:
| Weight | Return | |
| Bonds | 40% | 5% |
| Stocks | 60% | 18% |
The return on a benchmark portfolio was calculated as follows:
| Weight | Return | |
| Bonds (Barclays Bond Index) | 70% | 3% |
| Stocks (S&P500 Index) | 30% | 9% |
Calculate the contribution of security selection (as a percentage) to the fund's total excess return.
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The Principals Guide To School Budgeting
Authors: Richard D. Sorenson, Lloyd M. Goldsmith
3rd Edition
1506389457, 978-1506389455
