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 13.0 13.5 11.1 2 -2.8 -4.0 -2.0 3 14.0 13.0 18.5 4 0.5 2.4 -0.7 5 -7.8 -6.2 -3.5 6 23.4 25.5 21.5 7 -11.6 -12.0 -14.0 8 5.0 5.5 5.6 9 2.7 4.1 2.5 10 19.1 18.2 19.2 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: % 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: %
Consider the annual returns produced by two different active equity
Period | Manager A | manager B | index |
1 | 13.0 | 13.5 | 11.1 |
2 | -2.8 | -4.0 | -2.0 |
3 | 14.0 | 13.0 | 18.5 |
4 | 0.5 | 2.4 | -0.7 |
5 | -7.8 | -6.2 | -3.5 |
6 | 23.4 | 25.5 | 21.5 |
7 | -11.6 | -12.0 | -14.0 |
8 | 5.0 | 5.5 | 5.6 |
9 | 2.7 | 4.1 | 2.5 |
10 | 19.1 | 18.2 | 19.2 |
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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: %
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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: %
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