particular year, Galaxy Fund earned a return of 1% by making the following investments in asset classes:   Weight Return Bonds 20 % 5 % Stocks 80 % 0 %   The return on a bogey portfolio was 2%, calculated from the following information.   Weight Return Bonds  50 % 5 % Stocks  50 % -1 % The contribution of asset allocation across markets to the Galaxy Fund's total excess return was Select one:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In a particular year, Galaxy Fund earned a return of 1% by making the following investments in asset classes:

  Weight Return
Bonds 20 % 5 %
Stocks 80 % 0 %

 

The return on a bogey portfolio was 2%, calculated from the following information.

  Weight Return
Bonds  50 % 5 %
Stocks  50 % -1 %

The contribution of asset allocation across markets to the Galaxy Fund's total excess return was

Select one:
A.

-1.00%.

B.

1.00%.

C.

0.80%.

D.

-1.80%.

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