An actively-managed fund generated the following returns on the major components of its portfolio:

Bonds: 30% of portfolio; Return = 12%

Stocks: 70% of portfolio; Return = 17%

The return on thebenchmark portfoliowas 12%, which was calculated based on the following:

Bonds: 60% of portfolio; Return = 10%

Stocks: 40% of portfolio; Return = 15%

The contribution ofasset allocationacross markets to the total excess return was _____.

a. 3.5%

b. 2.5%

c. 2.0%

d. 1.5%