Question: Given the following tracking error and correlations to various potential penchmarks a. What is the best benchmark to use for analyzing Manager X's performance

Given the following tracking error and correlations to various potential penchmarks a. What is the best benchmark to use for analyzing Manager X's performance and why? b. Is Manager X truly an active manager or a passi.e manager? Support your answer c Could the best benchmark for Manager X be considered as a benchmark at the portfolio level? Why Manager X tracking errors and correlations to indexes: S&P Global Natural Resources Index HFRI Long/Short Equitv Index MSCI Frontier Market Index Tradeable Yes No Yes Tracking error 9.50% 3.20% 0.80% Correlation 0.9 0.8 0.98

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