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

question 63

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) Sector/security selection hurt the portfolio performance; returns were 1.4% less than if the manager invested the funds in stocks and bond indexes.
• B) Sector/security selection improved the portfolio performance by 1.4%; each sector return was higher than for index value.
• C) Sector/security selection hurt the portfolio performance; returns were 6.8% less than if the manager invested the funds in stocks and bond indexes.
• D) Sector/security selection improved the portfolio performance by 6.8%; each sector return was higher than for index return.
• E) None of the above.

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Definitions:

Performing

A stage in team development where the group operates efficiently towards achieving its goals.

Adjourning

The final stage in Tuckman's group development model where the team completes its task and dissolves.

Storming Stage

The second phase in the Tuckman's model of team development, characterized by conflict and tension among team members as they assert their views.

Group Members

Individuals who belong to a defined collective or team, sharing common goals, responsibilities, or interests.