Manager A outperformed the index by X.XX% while Manager B underperformed the index by Y.YY%. Manager B had a tracking error of Z.ZZ% compared to the index, lower than Manager A's tracking error of W.WW%, so Manager B did a better job of limiting unsystematic risk exposure for their clients.
a. Did either manager outperform the index, based on the average annu.pdf
1. a. Did either manager outperform the index, based on the average annual return differential that
he or she produced relative to the benchmark? Use a minus sign to enter negative values, if any.
Do not round intermediate calculations. Round your answers to two decimal places. Manager A:
% Manager B: % 's average return is less than the index and 's average exceeded that of the
index. b. Calculate the tracking error for each manager relative to the index. Which manager did
a better job of limiting his or her client's unsystematic risk exposure? Do not round intermediate
calculations. Round your answers to two decimal places. Manager A: % Manager B: % did the
better job of limiting the client's exposure to unsystematic risk as the difference between
manager's returns and those of the index has a deviation.