Attribution analysis uses the Portfolio Manager's and Benchmark's asset allocations and returns across asset classes. A...

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Attribution analysis uses the Portfolio Manager's and Benchmark's asset allocations and returns across asset classes. A potential investor wishes to understand the skills of a Portfolio Manager based on the data below: Asset Class Equity Bonds Port. Weight 20% 80% BM Weight 60% 40% Port. Return 6% 6% BM Return 8% 4% Attribute the under/over performance by portfolio manager into allocation and selection effect. Based on your analysis, does the portfolio manager has the skill to outperform the benchmark on a consistent basis in the future? Attribution analysis uses the Portfolio Manager's and Benchmark's asset allocations and returns across asset classes. A potential investor wishes to understand the skills of a Portfolio Manager based on the data below: Asset Class Equity Bonds Port. Weight 20% 80% BM Weight 60% 40% Port. Return 6% 6% BM Return 8% 4% Attribute the under/over performance by portfolio manager into allocation and selection effect. Based on your analysis, does the portfolio manager has the skill to outperform the benchmark on a consistent basis in the future?

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