Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 8 of 11
Your investment policy portfolio specifies that you invest 60% in equities and 40% in bonds. Based on this, you invested 60% of your net worth in Vanguard Equity Funds, which had a benchmark return of 7.8% and an actual return of 9.2% at year end. You invested 40% in Domestic Bond Funds, which had a benchmark return of 3.5% and an actual return of 2.8% at year end. What can be said about the value added from your asset allocation decision? It is ______.
B. zero
C. negative
A. positive
B. zero
C. negative
User Contributed Comments 1
| User | Comment |
|---|---|
| perezma | trick! |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe how value added by active management is measured;
CFA® 2025 Level II Curriculum, Volume 6, Module 38.