You have just read the annual report of a mutual fund. It boasted of a 26% return and advertised that it had beat the market return last year by three percentage points

In doing some research you discover the fund had a beta of +1.5 and the return on risk-free Treasury securities was 15.0%. Assuming a market risk premium of 8.0% should be used to evaluate performance means that
A)

the fund’s performance was impressive; three percentage points is significant, given the above data.
B)

the fund’s performance was good, but not impressive; it beat the market, but only by one percentage pointnot three.
C)

the fund’s performance was no better than what you would have expected.
D)

the fund’s performance was actually a percentage point less than what you would have expected.