a. Based on this data, can you conclude that Manager A underperformed the market and Manager B outperformed the market? Why or why not?

b. What additional information do you think you would require in order to perform a compelling analysis of the investment performance of these managers?

c. What was the most likely investment objective followed by Portfolio Manager C? By Manager A?

d. What might explain the fact that Manager B's portfolio is so much less diversified than those run by Managers A and C?

References Association for Investment Management and Research. Standards of Practice Handbook, 8th ed. Charlottesville, Va.: AIMR, 1999.

Bekaert, Geert, and Michael S. Urias. "Diversification, Integration, and Emerging Market Closed-End Funds." Journal of Finance 51, no. 3 (July 1996).

Caccese, Michael S. "Ethics and the Financial Analyst." Financial Analysts Journal 53, no. 1 (January/February 1997).

Chordia, Tarun. "The Structure of Mutual Fund Charges." Journal of Financial Economics 41, no. 1 (May 1996): 3-39.

Edelen, Roger M. "Investor Flows and the Assessed Performance of Open-End Fund Managers." Journal of Financial Economics 53, no. 3 (September 1999): 439-466.

Ferson, Wayne E., and Rudi W. Schadt. "Measuring Fund Strategy and Performance in Changing Economic Conditions." Journal of Finance 51, no. 2 (June 1996).

Lakonishok, Josef, Andrei Shleifer, and Robert W. Vishny. "The Structure and Performance of the Money Management Industry." In Brookings Papers on Economic Activity. Washington, D.C.: Brookings Institute, 1992.

Peavy, John W. Investment Counsel for Private Clients. Charlottesville, Va.: Association for Investment Management and Research, 1993.

Porter, Gary E., Rodney L. Roenfeldt, and Neil W. Sicherman. "The Value of Open Market Repurchases of Closed-End Fund Shares." Journal of Business 72, no.2 (April 1999): 251-276.

Pozen, Robert C. The Mutual Fund Business, 2d ed. Boston, Mass.: Houghton Mifflin, 2001.

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