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A portfolio manager has maintained an actively managed portfolio with a beta of 0.2. During the last year, the risk-free rate was 5% and major

A portfolio manager has maintained an actively managed portfolio 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 portfolio manager produced a return of ?10% and claims that in the circumstances it was good. Is the portfolio manager correct and why or why not?

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