Primo Management Company is looking at how best to use benchmarks to evaluate the performance of...

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Primo Management Company is looking at how best to use benchmarks to evaluate the performance of its managers. The company has hired Sally Jones, CFA, to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. Jones put together some 2-year performance numbers comparing Primo's current domestic funds to a potential benchmark. Weight Return Style Category Large-cap growth Primo Benchmark Primo Benchmark 0.60 0.50 17% 16% Mid-cap growth 0.15 0.40 24% 26% Small-cap growth 0.25 0.10 20% 18% ces As part of her analysis, Jones also takes a look at one of Primo's global funds. In this particular portfolio, Primo is invested 75% in Dutch stocks and 25% in British stocks. The benchmark is invested 50% in Dutch stocks and 50% in British stocks. On average, the British stocks outperformed the Dutch stocks. The euro appreciated 6% versus the U.S. dollar over the holding period while the pound depreciated 2% versus the dollar. In terms of the local return, Primo outperformed the benchmark with the Dutch investments but underperformed the index with respect to the British stocks. What is the within-sector selection effect for each individual sector? Note: Round your answers to 1 decimal place. Negative amount should be indicated by a minus sign. Large-cap growth Mid-cap growth Small-cap growth % Total within-sector selection 196 Prev Primo Management Company is looking at how best to use benchmarks to evaluate the performance of its managers. The company has hired Sally Jones, CFA, to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. Jones put together some 2-year performance numbers comparing Primo's current domestic funds to a potential benchmark. Weight Return Style Category Large-cap growth Primo Benchmark Primo Benchmark 0.60 0.50 17% 16% Mid-cap growth 0.15 0.40 24% 26% Small-cap growth 0.25 0.10 20% 18% ces As part of her analysis, Jones also takes a look at one of Primo's global funds. In this particular portfolio, Primo is invested 75% in Dutch stocks and 25% in British stocks. The benchmark is invested 50% in Dutch stocks and 50% in British stocks. On average, the British stocks outperformed the Dutch stocks. The euro appreciated 6% versus the U.S. dollar over the holding period while the pound depreciated 2% versus the dollar. In terms of the local return, Primo outperformed the benchmark with the Dutch investments but underperformed the index with respect to the British stocks. What is the within-sector selection effect for each individual sector? Note: Round your answers to 1 decimal place. Negative amount should be indicated by a minus sign. Large-cap growth Mid-cap growth Small-cap growth % Total within-sector selection 196 Prev