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b) Based on the historical performance for two (2) different funds, the Kuala Lumpur Composite Index (KLCI) and the 180-day Malaysian Treasury bill shown in
b) Based on the historical performance for two (2) different funds, the Kuala Lumpur Composite Index (KLCI) and the 180-day Malaysian Treasury bill shown in the table, your task is to identify which fund manager has better investment selection skills. Support your answer by showing the calculation. (15 marks) Investment fund Rate of return Standard Deviation Beta Fund 1 14.5% 7% 1.5 Fund 2 9% 4% 0.8 KLCI 10% 5% Treasury bill 2.5%
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