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

question 31

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 is the contribution of security selection to relative performance?

• A) -0.15%
• B) 0.15%
• C) -0.3%
• D) 0.3%

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Definitions:

Payoff

The outcome of a decision or action, usually quantified in terms of profit or utility.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Michigan Football

The football program representing the University of Michigan in college football competitions.

Gain Yards

A term typically used in sports, especially American football, indicating the act of advancing the ball closer to the goal line.