The Table Presents the Actual Return of Each Sector of the Manager's

question 53

Multiple Choice

The table presents the actual return of each sector of the manager's portfolio in column (1) , the fraction of the portfolio allocated to each sector in column (2) , the benchmark or neutral sector allocations in column (3) and the returns of sector indexes in column (4) . What was the bogey's return in the month?

• A)2.07%
• B)2.21%
• C)2.24%
• D)4.80%

---

Definitions:

Annual Percentage Rates

Annual Percentage Rates (APR) represent the annual interest rate charged for borrowing or earned through an investment, accounting for fees and other costs.

APR

Annual Percentage Rate, encompassing the annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs.

Dollar-Weighted Return

A measure of an investment's performance that takes into account the timing and amount of all cash inflows and outflows.

Geometric Average Return

The average rate of return on an investment that is calculated by multiplying n variables and then taking the n-th root of the product.