You have the following performance information given to you:

Benchmark Portfolio			Joes Portfolio			Kims Portfolio
	Weight	Return		Weight	Return		Weight	Return
Stocks	0.6	-5.00%	Stocks	0.5	-4.00%	Stocks	0.3	-5.00%
Bonds	0.3	3.50%	Bonds	0.2	2.50%	Bonds	0.4	3.50%
T-Bills	0.1	1.00%	Cash	0.3	1.00%	Cash	0.3	1.00%

The risk-free rate is 1% and the standard deviation for the Benchmark portfolio is 3.50%, Joes portfolio is 5.00% and Kims portfolio is 3.00%.

1. Compare Joe and Kims performance relative to the benchmark in terms of portfolio returns.
2. If they are beating the market determine the sources of their success in terms of security selection and asset allocation.
   1. Who is superior in security selection?
   2. Who is superior in asset allocation?
3. Using the Sharpe Index, determine which manager is performing better than the market on a risk adjusted basis.