In a Particular Year, Razorback Mutual Fund Earned a Return

question 6

Multiple Choice

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

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Definitions:

Statistic

A single measure, calculated from sample data, that is used to summarize or describe aspects of the data.

Parameter

A characteristic or measure that defines or summarizes a feature of a statistical model or distribution.

Cardboard Containers

Packaging materials made from layers of paper pulp pressed together, commonly used for shipping or storing goods.

Statistic

A statistic is a numerical value that describes a characteristic or measure derived from a sample of data.