Period Manager A

$(\%)$ Manager B

$(\%)$ Index

$(\%)$

$112\mathrm{.}212\mathrm{.}811\mathrm{.}8$

$2-3\mathrm{.}0-4\mathrm{.}6-2\mathrm{.}1$

$315\mathrm{.}214\mathrm{.}018\mathrm{.}8$

$40\mathrm{.}52\mathrm{.}9-0\mathrm{.}7$

$5-7\mathrm{.}5-6\mathrm{.}1-3\mathrm{.}8$

$625\mathrm{.}125\mathrm{.}721\mathrm{.}5$

$7-11\mathrm{.}8-11\mathrm{.}4-13\mathrm{.}3$

$85\mathrm{.}15\mathrm{.}55\mathrm{.}3$

$93\mathrm{.}13\mathrm{.}62\mathrm{.}0$

$1019\mathrm{.}318\mathrm{.}819\mathrm{.}5$

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.