Question
In a particular year, a fund manager made the following investments in the following asset classes: Weight Return Bonds 30% 3% Stocks 70% 25% The
In a particular year, a fund manager made the following investments in the following asset classes:
| Weight | Return | |
| Bonds | 30% | 3% |
| Stocks | 70% | 25% |
The return on a benchmark portfolio was calculated as follows:
| Weight | Return | |
| Bonds (Barclays Bond Index) | 40% | 3% |
| Stocks (S&P500 Index) | 60% | 14% |
Calculate the contribution of asset allocation (as a percentage) to the fund's total excess return.
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Advanced Finance Theories
Authors: Ser-Huang Poon
1st Edition
9814460370, 978-9814460378
