hard · Principles of Finance

Using the Brinson-Fachler decomposition for Quarter 1, calculate the total active return. Benchmark: Equity 70% (return 7%), Bonds 30% (return 4%). Portfolio: Equity 60% (return 8%), Bonds 40% (return 3%).

1. +0.10%
2. 0.00%
3. -0.10%
4. +0.20%

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