Problem 11-07 Consider the annual returns produced by two different active equity portfolio managers (A and B) as well as those to the stock index with which they are both compared: Period Manager A Manager B Index 1 13.4 % 13.8% 11.8% 2 -2.0 -4.3 -2.2 3 14.7 13.2 18.4 4 0.3 1.4 -0.6 5 -7.2 -6.8 -3.2 6 24.6 24.3 21.3 7 -10.3 -11.4 -13.8 8 5.6 5.4 5.7 9 2.3 4.3 2.5 10 19.6 18.0 19.7 a. Did either manager outperform the index, based on the average annual return differential that he or she 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- 's average return is less than the index and -Select- v 's average exceeded that of the index. b. Calculate the tracking error for each manager relative to the index. Which manager did a better job of limiting his or her client's unsystematic risk exposure? Do not round intermediate calculations. Round your answers to two decimal places. Manager A: % Manager B: % -Select v 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- v standard deviation