A Fund Has Excess Performance of 1

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