Explanation:
vacation s were fun then studying but it is not better then enjoying doing math that you know and talking with friends.
The prounoun "that" is used as a demonstrative pronoun in your sentence because it is used to demonstrate, or indicate something. In your sentence, that indicates which horse is your favorite.
For example, indirect characterization describing a protagonist might read, “John snapped at the man without warning,” whereas direct characterization would say simply, “John was short-tempered.”