Problem $23-4$ You have been asked to evaluate returns from your commercial real estate investment fund $($Bluestone Fund$)$ against an industry benchmark index to determine how successful your active investment strategy has been. Specifically, a potential client wants you to compare the performance of your portfolio strategy against a passive strategy of simply investing based on the same proportions of properties and locations comprising the index. During the most current quarter, the following information has been provided to you based on property type and location: Property TypeBluestone FundIndustry Index$\%$ of Fund ValueReturnWeighted Return$\%$ of Index ValueReturnWeighted ReturnApartments$20\%14\mathrm{.}57\%2\mathrm{.}91\%35\%12\mathrm{.}57\%4\mathrm{.}40\%$Hotel$016\mathrm{.}570\mathrm{.}001014\mathrm{.}381\mathrm{.}44$Industrial$510\mathrm{.}570\mathrm{.}53308\mathrm{.}382\mathrm{.}51$Office$354\mathrm{.}571\mathrm{.}60106\mathrm{.}950\mathrm{.}70$Retail$4010\mathrm{.}574\mathrm{.}23158\mathrm{.}951\mathrm{.}34$Total$1009\mathrm{.}2710010\mathrm{.}39$ Location TypeBluestone FundIndustry Index$\%$ of Fund ValueReturnWeighted Return$\%$ of Index ValueReturnWeighted ReturnNorth$30\%11\mathrm{.}57\%3\mathrm{.}47\%35\%12\mathrm{.}57\%4\mathrm{.}40\%$South$3512\mathrm{.}574\mathrm{.}401514\mathrm{.}382\mathrm{.}16$East$107\mathrm{.}570\mathrm{.}76258\mathrm{.}192\mathrm{.}05$West$252\mathrm{.}570\mathrm{.}64257\mathrm{.}141\mathrm{.}79$Total$1009\mathrm{.}2710010\mathrm{.}39$ Required: Use the Brinson$-$Hood$-$Beebower $($BHB$)$ approach to calculate the extent to which the Bluestone Fund is over$-$ or $($under$)$weighted by property type relative to the industry index.Use the Brinson$-$Hood$-$Beebower $($BHB$)$ approach to calculate the extent to which the Bluestone Fund is over$-$ or $($under$)$weighted by location or region relative to the industry index.To what extent was the performance by Bluestone attributable to property selection versus allocation based on property type?To what extent was the performance by Bluestone attributable to property selection versus allocation based on location or region?