Question: In a particular year, Wiseguys Mutual Fund earned a return of 15% by making the following investments in the following asset classes Asset Class Weight
In a particular year, Wiseguys Mutual Fund earned a return of 15% by making the following investments in the following asset classes
| Asset Class | Weight | Return |
| Bonds Stocks | 10% 90% | 6% 16% |
The return on a benchmark portfolio was 11%, calculated as follows:
| Asset Class | Weight | Return |
| Bonds (Lehman Index) Stocks (S&P 500 index) | 40% 60% | 5% 15% |
The contribution of asset allocation across markets to the total excess return was
| A. | 5% | |
| B. | 4%
| |
| C. | 3%
| |
| D. | 1%
|
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