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:

Desensitization

A process in psychology used to reduce phobic or negative reactions to stimuli by gradually exposing the individual to the stimuli in a controlled manner.

Aversive Conditioning

A method of behavior modification that involves using unpleasant stimuli to discourage undesirable behaviors.

Negative Transference

A psychological phenomenon where an individual projects feelings of negativity or hostility from past relationships onto a new person, often a therapist.

Behavioral Contracting

A therapy technique involving a written agreement between a therapist and a client outlining behavior change expectations and rewards.