Question: Question You are provided with the following data for a three-sector LUSE portfolio (P) and the benchmark (B): Sector Weight (P) Weight (B) Return (P)

Question You are provided with the following data for a three-sector LUSE portfolio (P) and the benchmark (B): Sector Weight (P) Weight (B) Return (P) Retn (B) Energy 50% 50% 18% 10% Health Care 30% 20% 3% 2% Financials 20% 30% 10% 12% Required: a) Determine the allocation contribution of the following: i. Energy sector ii. Health sector iii. Financials sector [06 Marks] b) What was the fund managers contribution to the portfolio performance due to security selection for the: i. Energy sector ii. Health sector iii. Financials sector [06 Marks] c) How did the portfolio perform in comparison to the benchmark? [04 Marks] d) What were the main causes of the difference in performance between the two? [04 Marks] [Total: 20 Marks]

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