Question: The following information has been made available for the monthly returns generated by two fund managers and the FT All Share Index over the last full calendar year:

You are required to set up and test the following hypotheses:

(i) Manager A has significantly outperformed Manager B.

(ii) Manager A has significantly outperformed the FT All Share Index.

(iii) Manager B has significantly outperformed the FT All Share Index. (60 per cent of the marks)