Return of Benchmark portfolio Investment Weight ( W ) Return ( R...
80.2K
Verified Solution
Link Copied!
Question
Finance
Return of Benchmark portfolio
Investment
Weight ( W )
Return ( R )
W * R
Equities
0.6
5.81
3.49
Fixed Income Securities
0.3
1.45
0.44
Cash
0.1
0.48
0.05
Total
3.97
Return of HSIF Portfolio
Investment
Weight ( W )
Return ( R )
W * R
Equities
0.8
7.28
5.82
Fixed Income Securities
0.07
1.89
0.13
Cash
0.13
0.48
0.06
Total
6.02
The difference in return due to fund allocation diffeerence is 6.02 - 3.97 = 2.05%
How much of the difference between the HSIF portfolio and the benchmark portfolio is related to the asset allocation decision? (report your answer in percent without the percent sign. For example if your answer is 2.45% enter 2.45 not .0245).
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
