Style bias and active management calculation

gonowpass

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From past paper:
Decision making level Incremental return (%)
Risk-free asset 0.5
Asset category 7.52
Benchmarks 0.14
Investment managers 0.08
Allocation effects -0.1
Total fund 8.14
Calculate style bias and active management:
1. Style bias
Style bias = benchmark – market index.
Answer is 0.14%.
Why do we not subtract a market index value?
2. Active Management
Active management = portfolio – benchmark
Answer is 0.08%
Why is the answer not = 8.14% – 0.14% = 8%
 
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