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Primo Management Co is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios

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Primo Management Co is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios and is interested in trying this approach As such, the company hired Sally Jones, CFA, as a consultant to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking. For the sake of discussion, Jones put together some comparative two-year performance numbers that relate to Primo's current domestic funds under management and a potential benchmark Return Benchmark Style Category Large-cap growth Hid-cap growth Swall-cap growth Welsh Primo Benchmark 0.50 0.50 0.1 9.40 0.25 9.10 Primo 173 24 20 16 26 18 As part of her analysis, Jones also takes a look at one of Primo's global funds. In this particular portfolio Primo is invested 75% in Dutch stocks and 25% in British stocks. The benchmark is invested 50% in Dutch and and 50% in British stocks. On average, the British stocks outperformed the Dutch stocks. The euro appreciated 6% versus the US dollar over the holding period while the pound deprecated 2% versus the dollar. In terms of the local return, Primo outperformed the benchmark with the Dutch investments, but underperformed the index with respect to the British stocks Calculate the amount by which the Primo portfolio out for under) performed the market over the period? (Round your answer to 1 decimal place. Input the amount as positive value) portale underperfomed by b. Calculate the contribution to performance of the pure sector allocation? (Negative amount should be indicated by a minus sign Round your answer to telemal place) b. Calculate the contribution to performance of the pure sector allocation? (Negative amount should be indicated by a mnus sign. Round your answer to 1 decimal place.) Pure sector allocation c. Calculate the contribution to performance of the security selection decisions? (Round your answer to 1 decimal place.) Security Solection decisions

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