Question $1(1\mathrm{.}25$ points$)$

A money manager generates a return of $12\%$ when achmark returns $10\%.$ The manager's asset allocation decisions underperform basis points. Which is most accurate?

Security selection decisions outperform by $225$ basis points.

The manager outperforms the benchmark by $225$ basis points.

Asset allocation decisions helped the manager outperform the benchmark.

The manager excelled in both asset allocation and security selection decisions.