Finance question - investments Investment A 70% invested on equity, return rate

Question

Finance question - investments
Investment A 70% invested on equity, return rate 11% 30% invested on bonds, return rate 7%
Investment B 50% invested on equity, 10% return rate 50% invested on bonds, 6% return rate
how much did investment A outperform/underperform investment B
also name allocation, selection and interaction advantage Finance question - investments
Investment A 70% invested on equity, return rate 11% 30% invested on bonds, return rate 7%
Investment B 50% invested on equity, 10% return rate 50% invested on bonds, 6% return rate
how much did investment A outperform/underperform investment B
also name allocation, selection and interaction advantage Finance question - investments
70% invested on equity, return rate 11% 30% invested on bonds, return rate 7%
Investment B 50% invested on equity, 10% return rate 50% invested on bonds, 6% return rate
how much did investment A outperform/underperform investment B
also name allocation, selection and interaction advantage

Explanation / Answer

Calculation of Average return Investment A =70%*11% + 30% * 7% =9.8% Investment B =50% * 10% + 50%*6% =8% Investment A ouperform investment B by 180 basis points

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