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

	Benchmark Portfolio		Manager A Portfolio		Manager B Portfolio
	Weight	Return	Weight	Return	Weight	Return
Stocks	0.6	-5%	0.5	-4%	0.3	-5%
Bonds	0.3	-3.50%	0.2	-2.50%	0.4	-3.50%
Cash	0.1	0.30%	0.3	0.30%	0.3	0.30%

a) Calculate the following:

(1) the overall return to the benchmark portfolio,

(2) the overall return to Manager As actual portfolio,

(3) the overall return to Manager Bs actual portfolio.

Briefly comment on whether these managers have under- or outperformed the benchmark fund.

b. Using attribution analysis, calculate the selection effect and allocation effect for 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.