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Use the following information for the next four problems. Asset Class Manager Weights Benchmark Weights Manager Return Benchmark Return Stock 0.75 0.60 9.0% 7.0% Bonds

Use the following information for the next four problems.

Asset Class

Manager Weights

Benchmark Weights

Manager Return

Benchmark Return

Stock

0.75

0.60

9.0%

7.0%

Bonds

0.20

0.30

-1.0%

1.0%

Cash

0.05

0.10

1.0%

3.0%

What is the managers return?

b. (4 points)

What is the return on the benchmark?

c. (2 points)

By how much did the manager beat the benchmark?

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