3. In the text we compared the advantages of relative performance evaluation against an evaluation based solely on the employee's own performance. Here we consider all combinations of the two as well. Thus, suppose manager A's measured 245 Risk Sharing and Incentive Contracts performance is en + XA + xc and B's measured performance is ep + xp + xc, where * *s, and xc are independent sources of randomness. Suppose it is proposed to base manager A's compensation on his or her own performance minus 8 times some measure B's performance. Find the value of that minimizes the variance of the pxerformance measure. How does this value change with changes in Vanx.)? Changes in Var xg)? Changes in Vanac)? 3. In the text we compared the advantages of relative performance evaluation against an evaluation based solely on the employee's own performance. Here we consider all combinations of the two as well. Thus, suppose manager A's measured 245 Risk Sharing and Incentive Contracts performance is en + XA + xc and B's measured performance is ep + xp + xc, where * *s, and xc are independent sources of randomness. Suppose it is proposed to base manager A's compensation on his or her own performance minus 8 times some measure B's performance. Find the value of that minimizes the variance of the pxerformance measure. How does this value change with changes in Vanx.)? Changes in Var xg)? Changes in Vanac)