A hedge fund is considering hiring two different portfoliomanagers, Alice and Bob.The fund’s Sharpe ratio is currently believed to be 1.00. Based on historical data, you believe that Alice has a Sharpe ratio of 0.80 and is 30% correlated with the fund’s existing portfolio.

Bob has a Sharpe ratio of 1.10 and is 90% correlated with the existing portfolio.

Calculate the incremental Sharpe ratio for both managers. Assuming these values are correct, at the margin, which manager would improve the fund’s overall Sharpe ratio the most?