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

question 47

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 manager's over or under performance for the month?

• A) Under performance = 0.03%
• B) Over performance = 0.03%
• C) Over performance = 0.14%
• D) Under performance = 3%

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Definitions:

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, putting a higher relative burden on lower-income earners.

Direct Tax

A tax directly paid to the government by the individual or organization upon whom it is imposed, such as income tax.

Foreign Aid

Financial or material assistance given by one country to another for development, emergency relief, or economic stabilization.

Federal Spending

Government expenditure funded by the federal budget, including infrastructure, defense, social services, and interest payments.