In a Particular Year, Razorback Mutual Fund Earned a Return

question 66

Multiple Choice

In a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes: $$\begin{array} { | l | l | l | } \hline & \text { Weight } & \text { Return } \\\hline \text { Bonds } & 20 \% & 5 \% \\\hline \text { Stocks } & 80 \% & 0 \% \\\hline\end{array}$$ The return on a bogey portfolio was 2%, calculated from the following information. $$\begin{array} { | l | l | l | } \hline & \text { Weight } & \text { Return } \\\hline \text { Bonds (Lehman Brothers Index) } & 50 \% & 5 \% \\\hline \text { Stocks (S\&P 500 Index) } & 50 \% & - 1 \% \\\hline\end{array}$$
-The contribution of asset allocation across markets to the Razorback Fund's total excess return was __________.

• A)-1.80%
• B)-1.00%
• C)0.80%
• D)1.00%
• E)none of the above

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Definitions:

Expressive Use

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Formal Elements

Fundamental visual components of art such as line, shape, color, texture, and space, which are combined to create artworks.

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An artist associated with German Expressionism, a movement emphasizing emotional experience over physical reality, often through bold colours and agitated brushstrokes.

Grieving Mother

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