Portfolio Performance Is Often Decomposed into Various Subcomponents Such as the Return

question 43

Multiple Choice

Portfolio performance is often decomposed into various subcomponents such as the return due to ________.
I. broad asset allocation across security classes
II. sector weightings within equity markets
III. security selection with a given sector
The decision that contributes most to the fund performance is:

• A)I
• B)II
• C)III
• D)All contribute equally to fund performance