Question: Below is data for a portfolio composition and performance, along with the benchmark. Benchmark weight Portfolio weight stocks 0.5 0.4 bonds 0.5 0.6 Benchmark return

Below is data for a portfolio composition and performance, along with the benchmark.

Benchmark weight Portfolio weight
stocks 0.5 0.4
bonds 0.5 0.6

Benchmark return Portfolio retrurn
stocks 8.00% 12.00%
bonds 6.00% 4.00%

Calculate the portfolio's out- (or under-) performance due to asset allocation!

-0.2%

0.2%

0.4%

-2%

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