A client retained the Conservative Management Company to manage funds on an indexed basis. The benchmark selected

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A client retained the Conservative Management Company to manage funds on an indexed basis. The benchmark selected was the Lehman Brothers U.S. Aggregate index. In each of the first four quarters, the management company outperformed the benchmark by a minimum of 70 basis points. In its annual review, a representative of the management company stressed its company's superior performance. You are a consultant who has been retained by the client. Comment on the claim of the management company representative.
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