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:

Hybrid Sterility

A postzygotic reproductive isolating mechanism in which an interspecific hybrid cannot reproduce successfully.

Hybrid Breakdown

A postzygotic reproductive isolating mechanism in which, although an interspecific hybrid is fertile and produces a second (F2) generation, the F2 has defects that prevent it from successfully reproducing.

Microevolution

Evolutionary change within a species or small group of organisms, especially over a short period.

Hybrid Inviability

A postzygotic reproductive isolating mechanism in which the embryonic development of an interspecific hybrid is aborted.