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

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Definitions:

Rewarded Acts

Rewarded acts refer to behaviors that receive positive reinforcement, which can encourage the repetition of these behaviors due to the rewards received.

Cultural Emphasis

The prioritization of certain beliefs, values, customs, and behaviors within a culture, highlighting the characteristics that are considered most important or central to the group's identity.

Parenting Practices

The behaviors and strategies that parents use to raise their children, including disciplinary tactics, communication styles, and nurturing actions.

Group Harmony

The state of agreement, accord, or unity within a group of individuals, often seen as a goal in many collective cultures.