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:

Sarbanes-Oxley Act

A law passed in 2002 aimed at protecting investors from fraudulent accounting activities by corporations.

Public Company Accounting Oversight Board

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.

SEC Oversight

Regulatory oversight exercised by the Securities and Exchange Commission, aiming to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Short-Swing Profits

Profits made from the sale of company stock within any six-month period by a statutory insider.