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

question 41

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 asset allocation to relative performance?

• A) -0.18%
• B) 0.18%
• C) -0.15%
• D) 0.15%

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Definitions:

Sample Mean

The average value of a set of data points collected from a sample of a population.

Median

The middle value of a data set when it is ordered from least to greatest, effectively splitting the data set into two equal parts.

Sample Variance

A measure of the variability or spread of a sample data set, calculated as the average of the squared differences from the sample mean.

Sample Mean

The mean of a collection of numbers, determined by adding all the values together and then dividing the total by the count of values in the set.