In a Particular Year, Hoosier Mutual Fund Earned a Return $\begin{array}{lcr} & \text { Weight } & \text { Return } \\\text { Bonds } & 20 \% & 5 \% \\\text { Stocks } & 80 \% & 0 \%\end{array}$

question 20

Multiple Choice

In a particular year, Hoosier Mutual Fund earned a return of 1% by making the following investments in asset classes: $\begin{array}{lcr} & \text { Weight } & \text { Return } \\\text { Bonds } & 20 \% & 5 \% \\\text { Stocks } & 80 \% & 0 \%\end{array}$
The return on a bogey portfolio was 2%, calculated from the following information.
$\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds (Lehman Brother Index) } &50\%&5\%\\ \text { Stacks (S\&P 500 Index) } &50\%&-1\%\\\end{array}$

The total abnormal return on the Hoosier Fund's managed portfolio was

• A) 1.80%.
• B) 1.00%
• C) 0.80%.
• D) 1.00%.

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