The benchmark portfolio has an asset allocation of 65% stocks, 30% bond and 5% cash. The annual returns on these three asset classes are 7.70%, 4.10% and 1.30%. Over the same time period, a portfolio manager had an asset allocation of 72% stocks, 23% bonds and the balance in cash. The returns on the three asset classes in the manager's portfolio were 7.69%, 4.20% and 1.51% respectively. 

What was the contribution to the manager's value-added, in % (to three decimal places) from his asset allocation skills?

Answer rating: 100% (QA)

calculate the contribution to the managers valueadded from his asset allocation skills you can use t... View the full answer