A portfolio manager has maintained an actively managed portfolio with a beta of 0.2. During the last

Question:

A manager has maintained an actively managed with a beta of 0.2. During the last year, the risk-free rate was 5% and major equity indices performed very badly, providing returns of about −30%. The manager produced a return of −10% and claims that in the circumstances it was good. Discuss this claim.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...