Portfolio performance is often decomposed into various subcomponents such as the return due to ___________.
I.broad asset allocation across security classes
II.sector weightings within equity markets
III.security selection with a given sector
The one decision that contributes most to the fund performance is
A) I
B) II
C) III
D) All contribute equally to fund performance

Question

Quizplus · Accepted Answer

Broad asset allocation across security classes is generally considered the most significant contributor to fund performance, as it determines the overall risk and return profile of the portfolio.

Portfolio Performance Is Often Decomposed into Various Subcomponents Such as the Return