Consider the following performance date for two portfolio managers (A and B) and common benchmark portfolio:

	Benchmark		Manager A		Manager B
	Weight	Return	Weight	Return	Weight	Return
Stock	60.00%	-4.67%	50.00%	-3.87%	20.00%	-0.05%
Bonds	20.00%	-3.50%	20.00%	-0.03%	40.00%	2.00%
Cash	20.00%	0.30%	30.00%	0.30%	30.00%	0.30%

1. Calculate the overall return to the benchmark portfolio, Manager As actual portfolio, and Manager Bs actual portfolio. Briefly comment on whether these managers have under- or out-performed the benchmark fund.

2. Using attribution analysis, calculate the allocation effect for Manager A and the selection effect for Manager B and comment on whether these managers have added value through their selection skills, the allocation skills, or both, and justify your conclusion.