The table presents the actual return of each sector of the manager's portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column 4.
-What is the contribution of security selection to relative performance?
A) -0.15%
B) 0.15%
C) -0.3%
D) 0.3%

Question

The table presents the actual return of each sector of the manager's portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column 4. 
-What is the contribution of security selection to relative performance?
A) -0.15% 
B) 0.15% 
C) -0.3% 
D) 0.3%

Quizplus · Accepted Answer

Security selection contribution is calculated as the difference between the portfolio's return and the benchmark's return due to security selection, which is given as -0.15%.

The Table Presents the Actual Return of Each Sector of the Manager's