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Use the following information for the next four problems. Asset Class Manager Weights Benchmark Weights Manager Return Benchmark Return Stock 0.75 0.60 9.0% 7.0% Bonds
Use the following information for the next four problems.
Asset Class | Manager Weights | Benchmark Weights | Manager Return | Benchmark Return |
Stock | 0.75 | 0.60 | 9.0% | 7.0% |
Bonds | 0.20 | 0.30 | -1.0% | 1.0% |
Cash | 0.05 | 0.10 | 1.0% | 3.0% |
What is the managers return?
b. (4 points)
What is the return on the benchmark?
c. (2 points)
By how much did the manager beat the benchmark?
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