Return of Benchmark portfolio Investment Weight ( W ) Return ( R...
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Finance
Return of Benchmark portfolio
| Investment | Weight ( W ) | Return ( R ) | W * R |
| Equities | 0.6 | 5.81 | 3.49 |
| Fixed Income Securities | 0.3 | 1.45 | 0.44 |
| Cash | 0.1 | 0.48 | 0.05 |
| Total | 3.97 |
Return of HSIF Portfolio
| Investment | Weight ( W ) | Return ( R ) | W * R |
| Equities | 0.8 | 7.28 | 5.82 |
| Fixed Income Securities | 0.07 | 1.89 | 0.13 |
| Cash | 0.13 | 0.48 | 0.06 |
| Total | 6.02 |
The difference in return due to fund allocation diffeerence is 6.02 - 3.97 = 2.05%
How much of the difference between the HSIF portfolio and the benchmark portfolio is related to the asset allocation decision? (report your answer in percent without the percent sign. For example if your answer is 2.45% enter 2.45 not .0245).
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