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In a Particular Year, Hoosier Mutual Fund Earned a Return  Weight  Return  Bonds 20%5% Stocks 80%0%\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds } &20\%&5\%\\ \text { Stocks } &80\%&0\%\\\end{array}

Question 73

Multiple Choice

In a particular year, Hoosier Mutual Fund earned a return of 1% by making the following investments in asset classes:  Weight  Return  Bonds 20%5% Stocks 80%0%\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds } &20\%&5\%\\ \text { Stocks } &80\%&0\%\\\end{array}


The return on a bogey portfolio was 2%, calculated from the following information.
 Weight  Return  Bonds (Lehman Brother Index)  50%5% Stacks (S&P 500 Index)  50%−1%\begin{array}{cc}& \text { Weight } & \text { Return }\\ \text { Bonds (Lehman Brother Index) } &50\%&5\%\\ \text { Stacks (S\&P 500 Index) } &50\%&-1\%\\\end{array}

The contribution of asset allocation across markets to the Hoosier Fund's total abnormal return was


A) 1.80%.
B) 1.00%
C) 0.80%.
D) 1.00%.

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