In a Particular Year, Roll Tide Mutual Fund Earned a Return

question 58

Multiple Choice

In a particular year, Roll Tide Mutual Fund earned a return of 15% by making the following investments in the following asset classes: $\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds } &10\%&6\%\\ \text { Stocks } &90\%&16\%\\\end{array}$


The return on a bogey portfolio was 10%, calculated as follows:
$\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds (Lehman Brother Index) } &50\%&5\%\\ \text { Stacks (S\&P 500 Index) } &50\%&15\%\\\end{array}$

The total abnormal return on the Roll Tide managed portfolio was

• A) 1%.
• B) 3%.
• C) 4%.
• D) 5%.

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Definitions:

Spine

the central support structure of the vertebral column, consisting of vertebrae that extend from the skull to the pelvis.

Trendelenburg Position

A medical position where the patient's legs are elevated higher than the head, often used to improve venous return to the heart.

Feet Elevated

A position in which the feet are raised higher than the rest of the body, often recommended for reducing swelling or improving circulation.

Recumbent

Lying down.