Consider the performance of two equity hedge funds. Hedge fund Ahad average returns of 25% with a portfolio beta of 18 hedge fund B had average return of 22% with a portfolio beta of 1.5. If during the performance period the risk-free rate was 2% and the market return was 19%, which hedge fund did the best job in picking stocks? Hedge fund A because it had higher alpha Hedge fund B because it had higher alpha Hedge fund A because it had higher beta Hedge fund because it had lower beta