Question: A portfolio invests in equity and bonds. Contribution data is given for 4 consecutive weeks as follows: Day 1 Equity = 5% Bonds = 2%
A portfolio invests in equity and bonds. Contribution data is given for 4 consecutive weeks as follows:
Day 1 Equity = 5% Bonds = 2% Portfolio = 7%
Day 2 Equity = 3% Bonds = 1% Portfolio = 4%
Day 3 Equity = -6% Bonds = 2% Portfolio = -4%
Day 4 Equity = 2% Bonds = 2% Portfolio = 4%
Calculate contribution of equity and bonds and show that your contributions explain the total portfolio performance of 11,1020%.
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