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

question 61

Multiple Choice

In a particular year, Hoosier Mutual Fund earned a return of 1% by making the following investments in asset classes: $\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds } &20\%&5\%\\ \text { Stocks } &80\%&0\%\\\end{array}$


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 contribution of selection within markets to the Hoosier Fund's total abnormal return was

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

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Definitions:

Goal Statement

A clear and specific declaration of the objectives an individual or organization aims to achieve.

Time Bound

Restricted or limited by a predetermined timeframe for completion.

Measurable

Pertains to something that can be quantitatively assessed or evaluated.

Ethical Decision

A choice made based on moral principles and values, often considering the impact on all stakeholders involved.