Based on the information below, what would your annualized alpha be if you invested in the 10% of mutual funds that offered the highest returns over the past year, based on gross returns (returns without fees removed)?

Group of answer choices

3.18%

-1.33%

0.83%

1.45%

Returns of Past Winners and Losers based on Gross Returns (no fees included) Value-weighted Gross Monthly Abnormal Returns 2 3 4-6 7-9 10-12 1-12 13-24 25-36 1 Lowest 10% of Funds a -0.10% -0.12% -0.13%-0.12% -0.09% -0.03%-0.10% 0.00% -0.02% t(a) -1.47 -1.69* -1.91* -1.84* -1.31 -0.41 -1.67* -0.09 -0.42 Highest 10% of Funds a 0.21% 0.16% 0.14% 0.14% 0.11% 0.06% 0.12% 0.02% 0.06% 3.22*** 2.65*** 2.48** 2.49** 1.85* 1.09 2.18** 0.42 1.20 t(a) *, **, and *** indicate significance at the 10%, 5%, and 1% levels Returns of Past Winners and Losers based on Gross Returns (no fees included) Value-weighted Gross Monthly Abnormal Returns 2 3 4-6 7-9 10-12 1-12 13-24 25-36 1 Lowest 10% of Funds a -0.10% -0.12% -0.13%-0.12% -0.09% -0.03%-0.10% 0.00% -0.02% t(a) -1.47 -1.69* -1.91* -1.84* -1.31 -0.41 -1.67* -0.09 -0.42 Highest 10% of Funds a 0.21% 0.16% 0.14% 0.14% 0.11% 0.06% 0.12% 0.02% 0.06% 3.22*** 2.65*** 2.48** 2.49** 1.85* 1.09 2.18** 0.42 1.20 t(a) *, **, and *** indicate significance at the 10%, 5%, and 1% levels