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: PeriodManager AManager BIndex113.5%13.1%12.0%2-1.8-4.6-2.4314.913.218.040.82.8-0.55-7.9-6.4-3.2624.024.321.17-10.0-12.1-13.385.05.45.192.84.02.01019.118.319.5

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: % -Select-Manager AManager BItem 3 's average return is less than the index and -Select-Manager AManager BItem 4 's average exceeded that of the index.

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: % -Select-Manager AManager BItem 7 did the better job of limiting the client's exposure to unsystematic risk as the difference between manager's returns and those of the index has a -Select-largersmallerItem 8 standard deviation.