$10.$a$.$Compute the tracking error from the following information:

Month Portfolio A$\text{'}$s Return Benchmark Index Return

January $2\mathrm{.}15\%1\mathrm{.}65\%$

February $0\mathrm{.}89\%-0\mathrm{.}10\%$

March $1\mathrm{.}15\%0\mathrm{.}52\%$

April $-0\mathrm{.}47\%-0\mathrm{.}60\%$

May $1\mathrm{.}71\%0\mathrm{.}65\%$

June $0\mathrm{.}10\%0\mathrm{.}33\%$

July $1\mathrm{.}04\%2\mathrm{.}31\%$

August $2\mathrm{.}70\%1\mathrm{.}10\%$

September $0\mathrm{.}66\%1\mathrm{.}23\%$

October $2\mathrm{.}15\%2\mathrm{.}02\%$

November $-1\mathrm{.}38\%-0\mathrm{.}61\%$

December $-0\mathrm{.}59\%-1\mathrm{.}20\%$

b$.$Would the tracking error computed in part a be a backward$-$looking or forward$-$looking tracking error?

c$.$Compare the tracking error found in part a to the tracking error found for Portfolios A is $9\mathrm{.}30$ and B in $79\mathrm{.}13.$

What can you say about the investment management strategy pursued by this portfolio manager?