Question 4 (Essential to cover)

The fund F has been investing in stocks and bonds. Given their strategy, an appropriate bogey portfolio is B. The performance and weights of F and B over the last year are given in the table below.

Asset class	wF	wB	rF	rB
Stocks	0.7	0.8	8%	11%
Bonds	0.3	0.2	7%	5%

a. To what would you attribute the performance of F relative to B in the stock category? b. To what would you attribute the performance of F relative to B in the bonds category? c. To what would you attribute the total performance of F relative to B?