The Contribution of Security Selection Within Asset Classes to the Total

question 32

Multiple Choice

The contribution of security selection within asset classes to the total excess return was ________.

• A)1.5%
• B)2.0%
• C)2.5%
• D)3.5% (.12 - .10.20 + (.1700 - .1500).80 = .0200

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Definitions:

Coefficient Of Variation

A standardized measure of dispersion of a probability distribution or frequency distribution, expressed as a ratio of the standard deviation to the mean.

Index Funds

A type of mutual fund or exchange-traded fund designed to follow or track the components of a market index, such as the S&P 500.

PHStat

A software add-in for Microsoft Excel that assists in statistical analyses.

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared deviations from the mean of the set.