Consider the following performance data for two portfolio managers (A and B) and a common benchmark portfolio: BENCHMARK MANAGER A MANAGER B Weight Return WEIGHT RETURN WEIGHT RETURN Stock 0.7 -4.7...

Consider the following performance data for two portfolio managers (A and B) and a common benchmark portfolio:

1. Calculate (1) the overall return to the benchmark portfolio, (2) the overall return to Manager A’s actual portfolio, and (3) the overall return to Manager B’s actual portfolio. Briefly comment on whether these managers have under- or outperformed the benchmark fund. Round your answers to two decimal places. Use a minus sign to enter negative values, if any.
   

   
   

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   	Overall return
   Benchmark	%
   Manager A	%
   Manager B	%

   
   

   
   



2. Using attribution analysis, calculate (1) theselection effect, and (2) theallocation effect for both Manager A and Manager B. Using these numbers in conjunction with your results from Part a, comment on whether these managers have added value through their selection skills, their allocation skills, or both. Do not round intermediate calculations. Round your answers to two decimal places. If the answer is zero, enter "0".
   

   
   

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   	Selection effect	Allocation effect
   Manager A	%	%
   Manager B	%	%