A university Endowment Fund is evaluated using Top-Down and Bottom-Up analysis, and against a 40:60 (Bonds:Equity) benchmark. The evaluation used the Fund and Benchmark performance over a 10 year period and the results are provided below in annualised terms. Excess Returns and Volatility:

	Average Excess returns above risk	Volatility
Fund	14.3%	25.9%
Benchmark	12.9%	16.9%

	Alpha	Standard error (alpha)	Beta	Standard error (Beta)	Standard deviation (error)
Fund	-1.27%	0.95%	1.7	4.65%	19%

You are required to:

a) (1.8 marks) Calculate if the fund has over or under performed its BM.

b) (2 marks) Explain if the Endowment Fund's portfolio manager has skills to perform well consistently in the future? (You can use 1.96 as the 95% two-tail T-statistic for your answer)

c) (2 marks) Given all the information above, what do you think is the defense:growth (Bonds:Equity) bias of the Endowment fund. Provide justification to support your answer.