Exhibit 18-10
THE FOLLOWING INFORMATION IS FOR THE NEXT PROBLEM(S)

question 35

Multiple Choice

Exhibit 18-10
THE FOLLOWING INFORMATION IS FOR THE NEXT PROBLEM(S)
Consider the following information for a portfolio manager $$\begin{array} { | l | c | c | c | c | } \hline & \begin{array} { c } \text { Policy } \\\text { Weight }\end{array} & \begin{array} { c } \text { Actual } \\\text { Weight }\end{array} & \begin{array} { c } \text { Index } \\\text { Returns }\end{array} & \begin{array} { c } \text { Actual } \\\text { Retums }\end{array} \\\hline \text { Stacks } & 0.65 & 0.7 & 0.11 & 0.12 \\\hline \text { Bonds } & 0.3 & 0.25 & 0.07 & 0.08 \\\hline \text { Cash } & 0.05 & 0.05 & 0.03 & 0.025 \\\hline\end{array}$$
-Refer to Exhibit 18-10. Calculate the percentage return that can be attributed to the asset allocation decision.

• A) 0.105%
• B) 0.925%
• C) 0.20%
• D) 0.96%
• E) 0.94%

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Definitions:

Postconventional Stage

A phase in moral development where individuals recognize and uphold universal ethical principles that may transcend laws.

Puberty

The developmental phase in humans and other primates marked by the maturation of the reproductive system, leading to reproductive ability.

Adolescents

Individuals in the developmental stage of transition from childhood to adulthood, typically characterized by changes in physical, psychological, and social structures.

Identity

Our sense of self; according to Erikson, the adolescent’s task is to solidify a sense of self by testing and integrating various roles.