Question

in a particular year, Razorback Mutual Fund earned a return of 1% by making the following investments in asset classes: Bonds Stocks Weight 20% 80% Return 5% 0% The return on a bogey portfolio was 2%, calculated from the following information. Return Weight 50% 50% Bonds (Lehman Brothers Index) Stocks (S&P 500 Index) 5% -1% The contribution of selection within markets to the Razorback Fund's total excess return was 0.80%. 1.00% 1.80%. -1.80%. -1.00%

Answer 1

The contribution of selection within the market to Razors back fund total excess return = Market return -Razorback fund return

                                             = 2 -1

                                               = 1%

correct option is " B" : 1%