A potential investor wishes to understand the skills of a Fund Manager. Attribution analysis uses the Fund Manager's and Benchmark's asset allocations and returns across asset classes to calculate Security Selection and Market Timing effects.

Asset Class

Fund Weight

BM Weight

FM Return

BM Return

Equity

20%

50%

6%

8%

Real Estate

80%

50%

7%

6%

Use the information on the Fund Manager's and Benchmark's allocations and returns across the two asset classes above to:

(i)CalculatetheMarket Timing (Allocation) effectandStock Selection effect.

(ii)Comment on the Fund manager's skillsto generate abnormal returns through Market Timing and Stock Selection.