Attribution Analysis of Mutual Fund Performance

Imagine you are a portfolio manager assessing the performance of a mutual fund that has been actively managed over the past year. The fund primarily invests in large-cap U.S. technology stocks. You have been provided with the following information:

- The mutual fund returned 15% over the year.

- The benchmark index, the S&P 500, returned 10% during the same period.

- The portfolio's sector allocation was as follows: 70% in technology, 20% in consumer discretionary, and 10% in telecommunications.

- The corresponding weights in the S&P 500 for these sectors were 25%, 15%, and 5%, respectively.

Your task is to conduct a brief attribution analysis of the mutual fund's performance compared to the S&P 500 benchmark. Discuss the contributions of both sector allocation and stock selection to the overall performance of the fund relative to the benchmark.