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

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

Benchmark weight Portfolio weight
stocks 0.5 0.6
bonds 0.5 0.4

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%

-2%

1.6%

1.8%

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