A portfolio manager has the following asset allocation and returns on his portfolio. Fill in the values in Column (3). Use Table 22–2 on page 579 as a guideline on how to proceed.
The benchmark portfolio with which he is being compared is shown below:
a. Explain why the portfolio manager under- or over performed the benchmark portfolio.
b. If cash equivalents had been reduced by the portfolio manager to 15 percent and had been invested in international equities at his indicated rate of return, would the portfolio manager have under- or over performed the benchmark portfolio?

  • CreatedSeptember 21, 2015
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