Consider the following performance data for two portfolio managers (A and B) and a
common benchmark portfolio:
BENCHMARK MANAGER A MANAGER B
Weight Return Weight Return Weight Return
Stock 0.6 ?5.0% 0.5 ?4.0% 0.3 ?5.0%
Bonds 0.3 ?3.5 0.2 ?2.5 0.4 ?3.5
Cash 0.1 0.3 0.3 0.3 0.3 0.3
a. Calculate (1) the overall return to the benchmark portfolio, (2) the overall return to
Manager A