You are managing an investment portfolio X on behalf of your clients. Assume the assets within portfolio X belong to three asset classes: stocks, fixed income and cash, with weights 60%, 9% and 31%. Suppose the benchmark index weights had been set at 65% equity, 18 % bonds and 17% money market. Question 2 (8 marks) The return of the benchmark index and the managed portfolio X for each asset class for last year were as follows Benchmark Index Portfolio X 8.28% 6.50% Stocks 1.45% 0.68% 2.89% Bonds 0.30% Money Market a. Calculate the excess return of portfolio X [3 marks] b. Let's focus on the bond asset classes among the portfolio X You have a one-year, $100,000 bond carries a coupon rate of 10 % . The bond will make the payment of accrued nterest and one-half of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the year. If the required yield is 20% annually, what is the duration of the bond? [Please keep three decimals]. [5 marks] Page 5 of 6 ibris, a ProQuest Compay, 2019 Pottelio Manage dent, telehuntes, Sptly sades AutoReco. MACR OFEXAM NO. Documen OV