1) An investment advisor is comparing performance of two mutual funds each of which is designed to outperform the S&P 500.

The Freedelity Fund returned 19%

The JPStanley Fund returned 16%.

Based on the information above, which is the better fund in terms of the manager's ability to select stocks?(5 pts)

A. Freedelity Fund has better stock selection

B. JP Stanley Fund has better stock selection

C. S&P 500 Index Fund has better stock selection

D. Freedelity & JP Stanley Funds have the same level of stock selection

E. Cannot tell from information provided