In a Particular Year, Aggie Mutual Fund Earned a Return

question 47

Multiple Choice

In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes: $$\begin{array} { | l | l | l | } \hline & \text { Weight } & \text { Return } \\\hline \text { Bonds } & 10 \% & 6 \% \\\hline \text { Stocks } & 90 \% & 16 \% \\\hline\end{array}$$ The return on a bogey portfolio was 10%, calculated as follows: $$\begin{array} { | l | l | l | } \hline & \text { Weight } & \text { Return } \\\hline \text { Bonds (Lehman Brothers Index) } & 50 \% & 5 \% \\\hline \text { Stocks (S\&P 500 Index) } & 50 \% & 15 \% \\\hline\end{array}$$
-The contribution of selection within markets to total excess return was

• A)1%
• B)3%
• C)4%
• D)5%
• E)none of the above

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Definitions:

Minbar

In a mosque, the pulpit on which the imam stands.

Minaret

A distinctive feature of mosque architecture, a tower from which the faithful are called to worship.

Muezzin

The person appointed at a mosque to lead and recite the call to prayer (Adhan) for every event of prayer and worship in the mosque.

Abbasids

A dynasty that ruled the Islamic Caliphate from 750 to 1258, known for their cultural achievements and the establishment of Baghdad as their capital.