In a Particular Year, Aggie Mutual Fund Earned a Return

question 49

Multiple Choice

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

• A) 1%.
• B) 3%.
• C) 4%.
• D) 5%.

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Definitions:

Distance

The amount of space between two points, which can be measured in various units and can also refer to an emotional separation between people.

Relative Height

The measurement or perception of height in relation to surrounding objects or figures, often used in visual arts or psychological studies.

Field Of Vision

The entire area that can be seen without moving the eyes, encompassing both central and peripheral vision.

Farther Away

At a greater distance from a specific point or location.