Question: Could you please explain how to get the number under Mkt.Ret.-Bogey colume? (6% and -4%)? In a particular year, Aggie Mutual Fund earned a return


Could you please explain how to get the number under Mkt.Ret.-Bogey colume? (6% and -4%)?


In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes: : \ Weight 1 Return I Bonds 109-46 69-h ; Stool-Ls 90% _ 16% The return on a bogey portfolio was 10%, calculated as follows: , Weight Return Bonds (Lehman Brothers Index) 50% _ 5% , Stocks (S&P 500 Index) A 50% 159-6 62. The contribution of asset allocation across markets to the total excess return was A. 1% B. 3% Q 4% D. 5% E. None of these is correct See table below. - . Bench Wt. XS Wt. Mkt. Ret. Bo Equity 0.9 0.5 0.4 6% 2.4% . Bond 0.1 l 0.5 _ -0.4 _ -402, 1.6% l 4.0%
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