Money market fund 4% 1% Investment-grade bond fund 25% 8% Large-cap stock fund 37% 12%...
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Money market fund 4% 1% Investment-grade bond fund 25% 8% Large-cap stock fund 37% 12% Mid-cap stock fund 34% 9.5% He uses a benchmark portfolio consisting of the following: Benchmark portfolio for Hampton Weight Actual return National money market index 5% 1% National high-quality fixed-income index 30% 7.5% National large-cap equity index 35% 11% National mid-cap equity index 30% 9.8%
Calculate: The excess return of the portfolio?
How much of the outperformance was due to the asset allocation decisions?
How much of the outperformance was due to the security selection decisions?
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