Consider the annual returns produced by two different active equity portfolio managers $($A and B$)$ as well as those to the stock index with which they are both compared:

Period Manager A

$(\%)$ Manager B

$(\%)$ Index

$(\%)$

$112\mathrm{.}812\mathrm{.}211\mathrm{.}4$

$2-3\mathrm{.}1-4\mathrm{.}1-2\mathrm{.}1$

$314\mathrm{.}313\mathrm{.}318\mathrm{.}3$

$40\mathrm{.}72\mathrm{.}4-0\mathrm{.}9$

$5-7\mathrm{.}8-5\mathrm{.}9-3\mathrm{.}4$

$623\mathrm{.}725\mathrm{.}721\mathrm{.}4$

$7-11\mathrm{.}5-11\mathrm{.}6-13\mathrm{.}5$

$85\mathrm{.}05\mathrm{.}55\mathrm{.}9$

$93\mathrm{.}53\mathrm{.}22\mathrm{.}5$

$1019\mathrm{.}618\mathrm{.}819\mathrm{.}0$

Did either manager outperform the index, based on the average annual return differential $($portfolio return minus index return$)$ produced relative to the benchmark? Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to two decimal places.

Manager A:

$\%$

Manager B:

$\%$

$-$Select$-$

$\text{'}$s average return is less than the index and

$-$Select$-$

$\text{'}$s average exceeded that of the index.

Calculate the tracking error for each manager relative to the index. Which manager did a better job of limiting client's unsystematic risk exposure? Do not round intermediate calculations. Round your answers to two decimal places.

Manager A:

$\%$

Manager B:

$\%$

$-$Select$-$

did the better job of limiting the client's exposure to unsystematic risk as the difference between manager's returns and those of the index has a

$-$Select$-$

standard deviation.