1. Primo Funds is a well-diversified balanced mutual fund. Following table provides details about Primo portfolio return from various asset classes, its portfolio allocation to various assets, the asset allocations of the benchmark portfolio and the index returns in various asset classes.

Assets	Actual Return	Actual Weight	Benchmark Weight	Index Return
Equity	8.5%	0.6	0.5	8%
Bond	3.5%	0.3	0.3	4%
Cash	3%	0.1	0.2	3%

Based on the information above answer following questions.

1. Estimate Primos relative performance in comparison to its benchmark?

1. What is the contribution of asset allocation decisions to Primos relative performance compared to the benchmark?

1. What is the contribution of security selection decision to Primos relative performance compared to the benchmark?
2. Alice is evaluating the performance of four large-cap equity portfolios: Funds A, B, C, D. As part of his analysis, Alice computed the Sharpe ratio and Treynors measure for all four funds. She finds the following:

Fund	Treynor Measure Rank	Sharpe Ratio Rank
A	1	4
B	2	3
C	3	2
D	4	1

What reason might be responsible for the difference in rankings for Funds A and D?