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As an analyst at Valuation Service Inc, you are comparing the performances of two investors. Investor A averaged a 20% rate of return and Investor
As an analyst at Valuation Service Inc, you are comparing the performances of two investors. Investor A averaged a 20% rate of return and Investor B had a 15% rate of return. The beta of Investor A was 1.9, whereas that of the other was 1.1. If the T-bill rate was 5% and the market return during the period was 1 3%. Please choose all correct answers. Please also note that each incorrect answer will reduce the score by 10%. Investor A is better than Investor B because Investor A has a higher alpha a. than Investor B. no The required returns for investor B is 13.8% The required returns for investor A is 15.60% no The required returns for investor A is 11.5% Investor B is better than Investor A because Investor A has a higher alpha e.than Investor B. The required returns for investor B is 15.60% The required returns for investor A is 20.2% h The required returns for investor B is 9.20% Investor B is better than Investor A because Investor B has a higher alpha i. than Investor A
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