Would someone help me to understand how the solution got the 2%, 3%, 0%, -4%, and -2%? I literally pulled my hair out for the past two hours. THANK YOU!

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Would someone help me to understand how the solution got the 2%, 3%, 0%, -4%, and -2%? I literally pulled my hair out for the past two hours. THANK YOU!

[question removed by moderator]

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It is the return for each stock minus the benchmark return which is 12%. So:

14% - 12% = 2%

15% - 12% = 3%

12% - 12% = 0%

8% - 12% = -4%

10% - 12% = -2%

How do you know the benchmark return is 12%? Is it because Stock 3’s portfolio weight and benchmark weight are both at 20% and its 2016 return is 12%?

But how can one stock’s return be the same as the benchmark’s portfolio return?