QUESTION 31

1. A portfolio manager generates a 15.7% return during the past year against a benchmark return of 13.3%. A BHB attribution analysis shows that 100 basis points are generated from asset selection. The asset allocation contribution to performance is closest to:

   		a. 1.1%.
   		b. 1.4%.
   		c. 1.9%.
   		d. 2.2%.

QUESTION 32

1. A fixed income portfolio manager selects bonds with lower durations than those in the benchmark portfolio to protect against rising interest rates. The results of the decision will most likely be revealed in the:

   		a. Policy effect.
   		b. Analysis effect.
   		c. Trading effect.
   		d. Management effect.