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 13.1% Manager B 13.8% 1 2 -2.4 -3.8 13.6 Index 11.9% -2.4 18.6 -0.6 -3.8 3 14.6 4 0.4 1.9 5 -7.5 -6.5 6 24.2 24.9 21.3 7 -11.6 -11.8 8 5.4 5.4 -13.3 6.0 2.1 19.7 9 3.0 4.6 10 19.8 18.4 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 an -Select- 's average exceeded that of the index. Manager A b. Calculate the tracking error for each manager relativ Manager B K. 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- 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 standard deviation. -Select- e 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- e 's average return is less than the index and -Select- e '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- -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 standard deviation. larger smaller