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Business, 13.11.2019 01:31 sarahcn9876

Two investment advisers are comparing performance. one averaged a 19% rate of return and the other a 16% rate of return. however, the beta of the first investor was 1.5, whereas that of the second was 1. [hint: find the alphas (abnormal returns) of these two investors]a. can you tell which investor was a better selector of individual stocks? b. if the t-bill rate were 6% and the market return during the period were 14%, which investor would be the superior stock selector? c. what if the t-bill rate were 3% and the market return were 15%?

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