QUESTION 9 Two investment advisers are comparing performance. Adviser A averaged a 20% retum with a...
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QUESTION 9 Two investment advisers are comparing performance. Adviser A averaged a 20% retum with a portfolio bela of 1.5, and adviser B averaged a 15% return with a portfolio beta of 1.2. If the T-bill rate was 5% and the market returm during the period was 13%, which adviser was the better stock picker? OA Advisor B was better because he generated a larger alpha. OB Advisor A was better because he generated a higher return. OC Advisor A was better because he generated a larger alpha. OD. Advisor 8 was better because he achieved a good return with a lower beta 5 points QUESTION 9 Two investment advisers are comparing performance. Adviser A averaged a 20% retum with a portfolio bela of 1.5, and adviser B averaged a 15% return with a portfolio beta of 1.2. If the T-bill rate was 5% and the market returm during the period was 13%, which adviser was the better stock picker? OA Advisor B was better because he generated a larger alpha. OB Advisor A was better because he generated a higher return. OC Advisor A was better because he generated a larger alpha. OD. Advisor 8 was better because he achieved a good return with a lower beta 5 points
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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