Primo Management Company is looking at how best to evaluate the performance of its managers....

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Accounting

Primo Management Company is looking at how best to evaluate the performance of its managers. Primo has been hearing more and more about benchmark portfolios and is interested in trying this approach. As such, the company hired Sally Jones, CFA, as a consultant to educate the managers on the best methods for constructing a benchmark portfolio, how to choose the best benchmark, whether the style of the fund under management matters, and what they should do with their global funds in terms of benchmarking.
For the sake of discussion, Jones put together some comparative two-year performance numbers that relate to Primo's current domestic funds under management and a potential benchmark.
\table[[,Weight,Return],[Style Category,Primo,Benchmark,Primo,Benchmark],[Large-cap growth,0.60,0.50,17%,16%
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