2. Beth Stewart is an investment analyst for the U.S.-based Empire Pension Fund. Empire is considering the addition of two recently established U.S. large-capitalization equity mutual funds to its asset mix. Stewart utilizes return-based-style analysis to compare the perfor mance of the Foreman Fund and the Copeland Fund for the past year. R Annual Return (gross)* Portfolio Turnover S&P 500 Index 6.8% Foreman Fund 68.5% 9.2% 45% "Management fees and administrative charges have not been deducted Copeland Fund 99.4% 7.0% 15% Based on this data, Stewart concludes that Foreman is an actively managed fund, that Copeland is an index fund, and that Foreman outperformed Copeland for the year. A colleague tells Stewart that her conclusions may not be accurate and makes the follow ing statements: Even though Foreman has a low R2 with the S&P 500 Index, Foreman may not be an actively managed fund. Copeland may be an actively managed fund even though Copeland has low portfolio turnover. Foreman may not have had superior risk-adjusted performance compared with Copeland for the year. For each of these three statements, describe one circumstance in which the statement could be correct.