Question: Use the table below to help answer questions 6-8. Disaggregate the portfolios relative return. Consider cash to be a sector. Include interaction effect in selection

Use the table below to help answer questions 6-8. Disaggregate the portfolios relative return. Consider cashto be a sector. Include interaction effect in selection effect when evaluating stock picking ability. NO T TEST PROVIDED W/ TABLE...

Sector	Rp	Rb	Wp	Wb
Information Technology	20.0%	12.0%	28.0%	15.0%
Financials	18.0%	16.0%	36.0%	25.0%
Health Care	10.0%	14.0%	22.0%	36.0%
Consumer Discretionary	0.0%	8.0%	12.0%	16.0%
Industrials	10.0%	10.0%	0.0%	8.0%
Cash	6.0%	6.0%	2.0%	0.0%

6. (CH12) Which of the following statements is most accurate:

A. The portfolio outperformed the benchmark by 148 basis points

B. The portfolio outperformed the benchmark by 136 basis points

C. The portfolio outperformed the benchmark by 40 basis points

D. The portfolio underperformed the benchmark by 40 basis points

E. The portfolio underperformed the benchmark by 136 basis points

7. (CH12) Which of the following statements is most likely TRUE:

A. Overall, the portfolio manager made good sector allocation decisions because the allocation effect was 36 basis points

B. Overall, the portfolio manager made good sector allocation decisions because the allocation effect was 50 basis points

C. Overall, the portfolio manager made good sector allocation decisions because the allocation effect was 214 basis points

D. Overall, the portfolio manager made bad sector allocation decisions because the allocation effect was (50) basis points

E. Overall, the portfolio manager made bad sector allocation decisions because the allocation effect was (214) basis points

8. (CH12) Which of the following statements is most likely TRUE:

A. The portfolio managers stock picking ability contributed 2% to the portfolios total performance

B. The portfolio managers stock picking ability contributed 1% to the portfolios total performance

C. The portfolio managers stock picking ability contributed (1%) to the portfolios relative performance

D. The portfolio managers stock picking ability contributed 1% to the portfolios relative performance

E. The portfolio managers stock picking ability contributed 2% to the portfolios relative performance

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