Between 1999 and 2008, the returns on Microfund averaged 4% a year.

In his 2008 discussion of performance, the fund president noted that this was nearly 6% a year better than the return on the U.S. market, a result that he attributed to the funds strategy of buying only stocks with outstanding management.

The following table shows the returns on the market, the size and book-to-market factors, and the interest rate during this period:

The fund had marketed itself as a way to invest in small and medium-sized stocks, and this was reflected in a beta relative to the size factor of 1.1. It had also traditionally adopted a conservative approach to risk with an estimated market beta of .7. The funds beta relative to the book-to-market factor was .2. Evaluate the performance of the fund during this period.