Answer Happy

Consider the following information regarding the performance of
a money manager in a recent month. The table represents the actual
return of each sector of the manager’s portfolio in column 1, the
fraction of the portfolio allocated to each sector in column 2, the
benchmark or neutral sector allocations in column 3, and the
returns of sector indices in column 4. Actual Return Actual Weight
Benchmark Weight Index Return Equity 2.1 % 0.5 0.6 2.6% (S&P
500) Bonds 1.9 0.1 0.3 2.3 (Barclay’s Aggregate) Cash 0.6 0.4 0.1
0.7 (T-Bills) a-1. What was the manager’s return in the month? (Do
not round intermediate calculations. Input all amounts as positive
values. Round your answer to 2 decimal places.) a-2. What was her
overperformance or underperformance? (Do not round intermediate
calculations. Input all amounts as positive values. Round your
answer to 2 decimal places.) b. What was the contribution of
security selection to relative performance? (Do not round
intermediate calculations. Round your answer to 2 decimal places.
Negative amount should be indicated by a minus sign.) c. What was
the contribution of asset allocation to relative performance? (Do
not round intermediate calculations. Round your answer to 2 decimal
places. Negative amount should be indicated by a minus
sign.)