Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the following information about a portfolio: Asset Class Allocation Target Allocation Actual Benchmark Return Fund Return Japan 0.10 0.10 6.00% 7.30% Europe 0.20 0.20 8.00% 7.30% Emerging Market 0.30 0.22 16.00% 16.10% North America 0.40 0.48 8.00% 8.10% A) What is the security selection effect for this portfolio? The security selection effect is %. Round your answer to the nearest three decimals places. B) What is the asset allocation effect for this portfolio? The asset allocation effect is %. Round your answer to the nearest three decimals places.
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