When we compare a fund with its benchmark index, the interpretation becomes more intuitive if we use M$2$ rather than the Sharpe ratio because Blank$\_\_\_\_\_\_.$

Multiple choice question.

it shows the difference in variance when portfolio return is the same as market return

M$2$ uses systematic risk instead of total risk

M$2$ uses excess return instead of average return

it shows the difference in return when portfolio variance is the same as market variance