Benchmark Selection for Diversified Equity Fund

Imagine you are a portfolio manager for a large mutual fund. To accurately evaluate the performance of your fund, you recognize the importance of selecting the right benchmark. A benchmark should represent the appropriate investment universe and should be reflective of the fund's investment strategy. Given this context, consider the following three benchmarks:

A) A broad market index such as the S&P 500 for an actively managed large-cap value fund.

B) A specialized sector index focused on technology for a diversified equity fund that includes stocks from various sectors.

C) A multi-asset benchmark that includes equities, fixed income, and alternative assets for a balanced fund that invests across multiple asset classes.

Which of the following benchmarks is most suitably aligned with the performance evaluation of the diversified equity fund?