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Consider the annual returns produced by two different active equity portfolio managers (A and B)...

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Consider the annual returns produced by two different active equity portfolio managers (A and B) as well as those to the stock index with which they are both compared: Period Index Manager A 12.7% 1 Manager B 13.0% -4.7 11.6% 2 -1.5 -2.5 3 13.9 18.3 15.6 0.4 4 5 2.0 -6.8 24.9 -7.7 23.6 - 10.2 -0.8 -3.1 21.4 6 7 -13.5 -11.7 5.3 8 5.5 5.4 9 2.3 2.6 4.3 18.0 10 19.2 19.1 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: % -Select- 's average return is less than the index and -Select- '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: % -Select- 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 -Select- standard deviation

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