A. In the first 5 months of this year, the Mustang Fund recorded the monthly returns set out in column (2) below. The Mustang Fund was tracking the ASX 200 market index, the monthly performance of which is set out in column (3).

Month, 2020 Mustang Fund return (%) ASX 200 return (%)

1. (2) (3)

January 6.6 5.0

February -8.9 -8.2

March -22.3 -21.2

April 7.3 8.8

May 1.8 1.2

1 + 1 + 1 = 3 marks

1. Calculate the monthly average tracking performance of the Fund.
2. Calculate the monthly average absolute tracking performance of the Fund.
3. Explain and compare your answers in parts i. and ii. above