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A client retained Conversative Management Company (CMC) to manage funds on an index basis. The benchmark selected was the U.S. Aggregate index. In each of

A client retained Conversative Management Company (CMC) to manage funds on an index basis. The benchmark selected was the U.S. Aggregate index. In each of the first four quarters CMC outperformed the benchmark by a minimum of seventy basis points. In its annual review, a CMC representative stressed its superior performance. You are a consultant who has been retained by the client. Comment on the claim of the CMC representative.

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