A Fund Has Excess Performance of 1

question 24

Multiple Choice

A fund has excess performance of 1.5%.In looking at the fund's investment breakdown you see that the fund overweighed equities relative to the benchmark and the average return on the fund's equity portfolio was slightly lower than the equity benchmark return.The excess performance for this fund is probably due to _______________.

• A) security selection ability
• B) better sector weightings in the equity portfolio
• C) the asset allocation decision
• D) finding securities with positive alphas

---

Definitions:

Feminist Theory

An analytical framework which seeks to understand societal structures and inequality through the lens of gender relations and the promotion of women's rights.

Social Structures

The organized patterns of relationships and institutions that together form the basis of society.

Social Interaction

The process by which individuals act and react in relation to others, forming the foundation of social relationships and society.

Microstructures

Refers to the patterns or arrangements of social relations and interactions on a small scale, such as in groups or face-to-face interactions.