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Performance information for a portfolio and benchmark are provided in the table below. Calculate the selection, allocation, and interaction effects from the managers performance and
Performance information for a portfolio and benchmark are provided in the table below. Calculate the selection, allocation, and interaction effects from the managers performance and show that they add up to the difference between the portfolio and benchmark returns.
Portfolio weight Benchmark weigh Portfolio returnBenchmark return Materials Industrials Consumer Staples 30% 30% 40% 20% 2000 60% 12% 8% 5% 8% 10% 890Step by Step Solution
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