Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager's portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.

Manager's Return (1) Manager's Weight (2) Benchmark Weight (3) Index Return (4)

Equity 2.5% 50% 60% 3.25%

Bonds 1.5% 40% 30% 1.00%

Cash 0.30% 10% 10% 0.30%

1.Briefly summarize the manager's positions and her performance with respect to the benchmark within each asset class.

2. What was the manager's return in the month? What was her overperformance or underperformance?

3. What was the contribution of asset allocation to relative performance?

4. What was the contribution of security selection to relative performance?