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In a particular year, Lost Hope Mutual Fund made the following investments in asset classes: The return on a bogey portfolio was 12%, based on
In a particular year, Lost Hope Mutual Fund made the following investments in asset classes: The return on a bogey portfolio was 12%, based on the following: The contribution of security selection within asset classes to the total extra return was __________.
0%
2%
1%
-1%
Return Bonds Stocks Weight 80% 20% 9% 4% Weight Bonds (aggregate bond index) 40% Stocks (S&P 500 Index) 60% Return 10% 5% Return Bonds Stocks Weight 80% 20% 9% 4% Weight Bonds (aggregate bond index) 40% Stocks (S&P 500 Index) 60% Return 10% 5%Step by Step Solution
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