Q1:Phil wishes to understand why a fund would hold more number of assets than the benchmark. He notes that most Australian large cap Growth funds hold similar number of assets as the benchmark index. He wishes to understand if this fund will have (i) larger Tracking Error compared with other Australian Large cap Growth funds, and (ii) a higher ability to generate Alphas compared with other Australian Large cap Growth funds. Your task is to help Phil by explaining how the number of firms AND their allocation will impact the Tracking Error and Jensen Alpha of this fund.