In a Particular Year, Aggie Mutual Fund Earned a Return

question 72

Multiple Choice

In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes: The return on a bogey portfolio was 10%, calculated as follows: The contribution of asset allocation across markets to the total excess return was

• A)1%.
• B)3%.
• C)4%.
• D)5%.

---

Definitions:

Delivery Equipment

This refers to the machinery and vehicles used for the purpose of transporting goods to customers.

Sales Taxes

Taxes imposed by governments on the sale of goods and services.

Motor Vehicle Licenses

Fees paid to a governmental authority for the registration and licensing of vehicles for operation on public roads.

Depreciation

The systematic allocation of an asset's cost over its useful life.