In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes:

The return on a bogey portfolio was 10%, calculated as follows:

The total excess return on the Aggie managed portfolio was
A) 1%.
B) 3%.
C) 4%.
D) 5%.
E) 6%

Question

In a particular year, Aggie Mutual Fund earned a return of 15% by making the following investments in the following asset classes:

The return on a bogey portfolio was 10%, calculated as follows:

The total excess return on the Aggie managed portfolio was
A) 1%. 
B) 3%. 
C) 4%. 
D) 5%. 
E) 6%

Quizplus · Accepted Answer

15% - 10% = 5%.

In a Particular Year, Aggie Mutual Fund Earned a Return