Exhibit 18-8
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 58

Multiple Choice

Exhibit 18-8
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array}{c}\text { Weights }\\\begin{array} { c c } \text { Palicy } & \text { Actual } \\\hline 50 \% \text { stacks } & 60 \% \text { stacks } \\50 \% \text { bonds } & 40 \% \text { bonds } \\ \quad \quad \quad \quad\text { Retunns } \\\text { Index } & \text { Actual } \\\hline \text { g\% 5tacks } & 9 \% \text { 5tacks } \\5 \% \text { bonds } & 7 \% \text { bonds }\end{array}\end{array}$$
-Refer to Exhibit 18-8. Which of the following statements is true?

• A) The portfolio manager earned an extra 0.3% because of a shift in allocation out of bonds and into stocks.
• B) The portfolio manager earned an extra 0.3% because of a shift in allocation out of stocks and into bonds.
• C) The portfolio manager earned an extra 6.5% because of a shift in allocation out of bonds and into stocks.
• D) The portfolio manager earned an extra 6.5% because of a shift in allocation out of stocks and into bonds.
• E) None of the above.

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Definitions:

Venture Investors

Individuals or firms that provide capital to start-up companies with high growth potential in exchange for equity.

High Potential

Referring to individuals or entities that exhibit the capacity for significant growth or achievement.

Need for Achievement

A psychological trait characterized by an individual's desire to achieve excellence and set challenging goals.

Adverse Situations

Circumstances or events that are unfavorable and pose challenges to an individual's or organization's goals and objectives.