1. Suppose an analyst has a measured alpha of .2% with a standard error of 2%, as in our example. What is the probability that the positive alpha is due to luck of the draw and that true ability is zero?

2. a. Suppose the benchmark weights had been set at 70% equity, 25% fixed income, and 5% cash equivalents. What then are the contributions of the managers asset allocation choices?

b. Suppose the S&P 500 return is 5%. Compute the new value of the managers security selection choices.

Please do not copy from Chegg. otherwise i have to report the answer.