QUESTION 2 During a 5-year period, the relevant results of the aggregate market are that the treasury bills is 8% and the return on the FTSE 100 index is 14%. For that period, the results of four portfolio managers are as follows: Portfolio Manager Average Return (%) 13% 14% 17% 13% Beta 0.8 1.05 1.25 0.90 All the portfolio managers has just got hold of an empirical studies done by Universiti Brunei Darussalam and the findings shown that the market is currently in the semi- strong form. Required i. Calculate the required return for each portfolio manager and compared them with the actual return? (8 marks) ii. Based upon your calculations, explain and select the manager with the best performance (5 marks) iii. Investors expect a company to announce a 3% increase in earnings during a press conference, but instead the company announces a 2% increase. Describe the 3 different forms of market efficiency and explain the expectations on the price under each form of efficiency. (12 marks) (Total: 25 marks)