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

	BENCHMARK				MANAGER A				MANAGER B
	Weight	Return			Weight	Return			Weight	Return
Stock	0.6	-4.6	%		0.5	-3.6	%		0.2	-4.6	%
Bonds	0.3	-3.8			0.2	-3.0			0.6	-3.8
Cash	0.1	0.4			0.3	0.4			0.2	0.4

1. Calculate (1) the overall return to the benchmark portfolio, (2) the overall return to Manager As actual portfolio, and (3) the overall return to Manager Bs actual portfolio. Briefly comment on whether these managers have under- or outperformed the benchmark fund. Round your answers to two decimal places. Use a minus sign to enter negative values, if any.

   	Overall return
   Benchmark	%
   Manager A	%
   Manager B	%

   Manager A has -Select-underperformedoutperformedItem 4 the benchmark fund.

   Manager B has -Select-underperformedoutperformedItem 5 the benchmark fund.

2. Using attribution analysis, calculate (1) the selection effect, and (2) the allocation effect for both Manager A and Manager B. Using these numbers in conjunction with your results from Part a, comment on whether these managers have added value through their selection skills, their allocation skills, or both. Do not round intermediate calculations. Round your answers to two decimal places. If the answer is zero, enter "0".

   	Selection effect	Allocation effect
   Manager A	%	%
   Manager B	%	%

   Manager A has added value through his/her -Select-allocationselectionboth selection and allocationItem 10 skills.

   Manager B has added value through his/her -Select-allocationselectionboth selection and allocationItem 11 skills.