Question

A money manager generates a return of 11% when the benchmark returns 9%. The manager's asset allocation decisions underperform by 50 basis points. Which is most accurate?

Answer 1

The correct answer of the given question is "security selection decision by 250 bps".

Step-by-step explanation:

The chief outflanks the benchmark by 250 premise focuses. Despite the fact that the benefit distribution failed to meet expectations by 50 premise focuses, the reserve beat by 200 premise focuses when contrasted and benchmark returns. So generally speaking out performance is considered as 250 premise focuses.