Benchmark Selection for Performance Evaluation

Alexandra is a portfolio manager who is tasked with evaluating the performance of a large-cap equity fund compared to its peers. To ensure an accurate performance assessment, she wants to choose an appropriate benchmark. In her analysis, she considers the primary objective of the fund, which is to outperform the S&P 500 index while exhibiting similar risk characteristics.

Given this context, Alexandra is evaluating three potential benchmarks that might serve her fund's performance comparison. She needs to choose the one that best aligns with the fund's investment strategy and characteristics.