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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