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Suppose an active equity manager has earned an active return of 90 basis points, of which 100 basis points is the result of security selection

Suppose an active equity manager has earned an active return of 90 basis points, of which 100 basis points is the result of security selection ability. What is the likely source of the difference?

A) A negative return from firm specific risk factors.

B) A negative return from factor tilts.

C) A positive return from the risk free asset.

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