USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information for a portfolio manager:

-Refer to Exhibit 18.12. Calculate the percentage return that can be attributed to the asset allocation decision.
A) 0.105 percent
B) 0.925 percent
C) 0.20 percent
D) 0.96 percent
E) 0.94 percent

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information for a portfolio manager:
 
-Refer to Exhibit 18.12. Calculate the percentage return that can be attributed to the asset allocation decision.
A) 0.105 percent 
B) 0.925 percent 
C) 0.20 percent 
D) 0.96 percent 
E) 0.94 percent

Quizplus · Accepted Answer

To calculate the percentage return attributed to asset allocation:
Total portfolio return - weighted average return of individual assets = percentage return attributed to asset allocation
In this case, the total portfolio return is 10.60% and the weighted average return of individual assets is 10.40%. So, the percentage return attributed to asset allocation is:
10.60% - 10.40% = 0.20%