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

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Definitions:

Mutualism

A type of symbiotic relationship between two species in which both benefit from the interaction, contributing to their survival and success.

Parasite

An organism that lives in or on another organism (its host) and benefits at the host's expense.

Hosts

Organisms that provide nourishment or shelter to parasites or mutual symbionts, playing crucial roles in ecosystems and disease dynamics.

Internal

Relating to or situated on the inside of something; inner.