Consider the following information regarding the performance ofa money manager in a recent month. The table represents the actualreturn of each sector of the manager’s portfolio in column 1, thefraction of the portfolio allocated to each sector in column 2, thebenchmark or neutral sector allocations in column 3, and thereturns of sector indices in column 4.

	Actual Return		Actual Weight	Benchmark Weight	Index Return
Equity	2.6	%	0.5	0.4	3.1% (S&P 500)
Bonds	1.6		0.2	0.2	1.8 (Barclay’s Aggregate)
Cash	0.6		0.3	0.4	0.7

a-1. What was the manager’s return in themonth? (Do not round intermediate calculations. Input allamounts as positive values. Round your answer to 2decimal places.)

a-2. What was her overperformance orunderperformance? (Do not roundintermediate calculations. Input all amounts as positive values.Round your answer to 2 decimal places.)

b. What was the contribution of securityselection to relative performance? (Do not roundintermediate calculations. Round your answer to 2decimal places. Negative amount should be indicated by a minussign.)

c. What was the contribution of assetallocation to relative performance? (Do not roundintermediate calculations. Round your answer to 2 decimal places.Negative amount should be indicated by a minus sign.)

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