The Table Presents the Actual Return of Each Sector of the Manager's

question 31

Multiple Choice

The table presents the actual return of each sector of the manager's portfolio in column (1) , the fraction of the portfolio allocated to each sector in column (2) , the benchmark or neutral sector allocations in column (3) , and the returns of sector indexes in column 4.
-What is the contribution of security selection to relative performance?

• A) -0.15%
• B) 0.15%
• C) -0.3%
• D) 0.3%

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Definitions:

International Trade

The exchange of goods, services, and capital among various countries and territories, influencing job markets, labor standards, and economic policies worldwide.

Financialization

The process by which financial services and institutions increase in size and influence in an economy, affecting economic policy and management.

Private Equity Funds

Investment funds that acquire or invest in private companies, often with the aim of restructuring and selling them at a profit.

Infrastructure

The fundamental physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.