A sharpe style analysis of a utility mutual fund finds an R2 of 59.3%. The analysis also indicates that the mutual fund's returns vary as if it invested 32% of its funds in long-term Treasury bonds and 68% of its funds in value stocks. These statistics suggest that the mutual fund's security selection decisions account for ____ % of the variability in the mutual fund's returns.

a. 59.3%

b. 68%

c. 32%

d. 40.7%