In a particular year, Bullish Mutual Fund earned a return of 1% by making the following investments in asset classes:

Weight

Return

Bonds

20%

5%

Stocks

80%

0%

The return on a bogey portfolio was 2%, calculated from the following information.

Weight

Return

Bonds(Lehman Brothers Index)

50%

5%

Stocks(S&P 500 Index)

50%

-1%

A. What is the total excess return on the Bullish Fund's managed portfolio? (1pt)

B. What is the contribution of asset allocation across markets to the Bullish Fund's total excess return? (3pts)

C. The contribution of selection within markets to the Bullish Fund's total excess return?