Regular analysis of the performance of portfolios is essential to ensure the portfolios returns are adequate and the portfolios investment goals and objectives are being met.

1. What performance evaluation measure would you use when deciding on the best active portfolio to combine with a passive portfolio. Explain in your own words why you chose this measure. (Worth 2 marks)
2. You are evaluating the performance of Roosters Fund. Use the data in the table to calculate how much of its performance was due to security selection and how much was due to asset allocation. You must show your workings. (Worth 2 marks)

		Equity	Fixed Income	Cash
Roosters Fund	Weight	55%	30%	15%
	Return in 2019-20	15%	10%	3%
Benchmark Fund	Weight	45%	45%	10%
	Return in 2019-20	10%	13%	3%