consider the following performance data for two portfolio managers ( A and B) and a common benchmark portfolio:

a) calculate (1) the overall return of the benchmark portfolio (2) The overall return to manager A's actual portfolio (3) The overall return to manager B's actual portfolio.

briefly comment on whether these managers have under or out perform the benchmark fund.

b) using the attribution analysis, calculate (1) The selection affect, (2) The allocation affect for both manager A and manager B. using these numbers in conjunction with your results from part a comment on one of these managers I have added value through their selection skills, they are allocation skills or both.

BENCHMARK Weight Return 0.6 -4.8% MANAGER B Weight Return 0.3 -4.8% Stock Bonds Cash MANAGER A Weight Return 0.5 -3.8% 0.2 -2.4 0.3 0.3 -3.8 0.3 0.1 0.4 0.3 -3.8 0.3 0.3 Benchmark Manager A Manager B Overall return % % % Manager A has -Select- the benchmark fund. Manager B has -Select- the benchmark fund. Manager A Manager B Selection effect Allocation effect % % % % skills. Manager A has added value through his/her -Select- Manager B has added value through his/her -Select- skills