How much did your investment portfolio


During the family gathering, you were comparing your investment to your cousin's. Last year you invested 70% on equity (return rate l 1%) and 30% on bonds (return rate 7%), while your cousin invested 50% on equity (return rate 10%) and 50% on bonds (return rate 6%). How much did your investment portfolio outperform/underperform your cousin's? What were the allocation advantage, selection advantage, and the interaction advantage?

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Financial Management: How much did your investment portfolio
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