Question 2 6.25 pts An analyst is assessing the performance of three investment advisors, each of which managed a diversified portfolio of stocks and delivered the following results for the past year: Portfolio manager #1: Total returns of 13% with a portfolio beta of 1.15 Portfolio manager #2: Total returns of 14% with a portfolio beta of 1.20 Portfolio manager #3: Total returns of 11.25% with a portfolio beta of 0.95 If the risk-free rate is 1% and the overall return for the market was 11%, which portfolio manager delivered the best risk-adjusted investment returns? Each portfolio manager is equally attractive because each exceeded expected market returns at acceptable levels of risk and there is no way to generate a more precise risk-adjusted return Portfolio manager #3 because this manager exceeded the market's 11% returns employing a level of risk that fell below the market's risk O Portfolio manager #1 because this manager delivered returns 18% above the market at a level of risk that exceeded the market by only 15%. Portfolio manager #2 because this manager delivered the highest excess returns (100 basis points) relative to the market