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I will rate you, thanks Problem 18-06 Consider the following performance data for two portfolio managers (A and B) and a common benchmark portfolio: a.
I will rate you, thanks
Problem 18-06 Consider the following performance data for two portfolio managers (A and B) and a common benchmark portfolio: a. Calculate (1) the overall return to the benchmark portfolio, (2) the overall return to Manager A's actual portfolio, and (3) the overall return to Manager B's actual portfolio. Briefly comment on whether these managers have under- or outperformed the benchmark fund. Round your answers to two decimal places. Use a minus sign to enter negative values, if any. Manager A has the benchmark fund. Manager B has the benchmark fund. b. Using attribution analysis, calculate (1) the selection effect, and (2) the allocation effect for both Manager A and Manager B. Using these numbers in conjunction with your results from Part a, comment on whether these managers have added value through their selection skills, their allocation skills, or both. Do not round intermediate calculations. Round your answers to two decimal places. If the answer is zero, enter " 0 ". Manager A has added value through his/her \}skills. Manager B has added value through his/her skillsStep by Step Solution
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