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Consider the performance of two investment advisors: one averaged a 19% rate of return with a beta of 2 and a standard deviation of
Consider the performance of two investment advisors: one averaged a 19% rate of return with a beta of 2 and a standard deviation of 38%, and the other averaged 15% with a beta of 1 and a standard deviation of 28%. The Tbill rate during that time period was 6% and the market return was 14% with a standard deviation of 18%. Which advisor seems to have been superior at stock selection? Calculate and explain. Which would you recommend to a well-diversified investor? Which would you recommend to an investor seeking a single manager? wwwwwww
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