Which of the following statements about Hawk is most accurate?
A) Hawk may be undergoing style drift. B) Hawk’s regression style fit indicates that most of its active returns are attributable to market timing. C) The most appropriate normal style benchmark for Hawk is the S&P/Citigroup 500 Value Index.
So A is supposed to be correct but::
How can they be having a style drift when their R2 is 96%, they have the lowest tracking error, and their returns based regressions has the strongest correlation with their stated index?
Exhibit D** Hawk Associates, LLP**