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Q2 (2 points). Two investors are comparing performance. One averaged a 19% rate of return and the other a 16% rate of return. However, the
Q2 (2 points). Two investors are comparing performance. One averaged a 19% rate of return and the other a 16% rate of return. However, the beta of the first investor was 1.5 , whereas that of the second investor was 1 . - Can you tell which investor was a better selector of individual stocks (aside from the issue of general movements in the market)? - If the T-bill rate was 6% and the market return during the period was 14%, which investor would be considered the superior stock selector
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