A university Endowment Fund is evaluated using Top-Down and Bottom-Up analysis, and against a 40:60 {Elonds:Equity}I benchmark. The evaluation used the Fund and Benchmark performance over a 1-year period and the results are provided below in annualised terms. Excess Returns and Volatility: Average Excess returns above _ , . Volatility risk free Regression of weekly excess fund returns {Fund return risk free return} regressed against excess benchmark returns {benchmark return risk free return} are presented below: Standard St d d Sta cl dE an ar error n ar rror Deviation lAlphal {Beta} {Errors} Bottom-Up Attribution Analysis Results Selection Effect = 4.1% Allocation Effect = 2.5%. You are required to: a} { 2 marks} Explain why the Top-Down alpha does not equal the overfunder performance of the Endowment fund through Bottom-up analysis. b} {2 marks} Explain if the Endowment Fund's portfolio manager has skills to outperform the benchmark consistently in the future? {You can use 1.96 as the 95% two-tail T-statistic for your answer. T-statistics for Alpha = Alphaf Standard Error of Alpha} :1 {2 marks} Given all the information above, what do you think is the defense:growth {Bonds:Equity} bias of the Endowment fund. Provide justication to support your