Question: In a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes: Weight Return Bonds 20 %

In a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes:

Weight Return
Bonds 20 % 5 %
Stocks 80 % 0 %

The return on a bogey portfolio was 2%, calculated from the following information.

Weight Return
Bonds (Lehman Brothers Index) 50 % 5 %
Stocks (S&P 500 Index) 50 % -1 %

The contribution of selection within markets to the Razorback Fund's total excess return was

Multiple Choice

0.80%.

-1.80%.

-1.00%.

1.00%.

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