In a Particular Year, Razorback Mutual Fund Earned a Return

question 12

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. $\begin{array}{lrrr} & & \text { Weight } & \text { Return } \\\text { Bonds (Lehman Brothers Index) } & 50 \% & 5 \%\\\text { Stocks (S\&P } 500 \text { Index) } & 50 \% & -1 \% \\\hline\end{array}$ 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%.

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Definitions:

Bilingual

Having the ability to speak two languages fluently.

Overregularization

A language acquisition error in which children apply regular grammatical rules to irregular cases.

Egocentric Speech

Speech that is focused on the speaker's own needs and perspectives, often observed in young children who have not yet developed the ability to consider others’ viewpoints.

Literal Translation

The process of translating text from one language to another while closely adhering to the original language's words and structure.