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Question 5: During a 5-year period, the relevant results for the aggregate market are that the rr (risk-free rate) is 6 percent and the
Question 5: During a 5-year period, the relevant results for the aggregate market are that the rr (risk-free rate) is 6 percent and the rm (return on market) is 13 percent. For that period, the results of four portfolio managers are as follows: Portfolio Manager A B C D Average Return 13 14 15 13 Betal 0.80 1.05 1.25 0.90 a. Calculate the expected rate of return for each portfolio manager and compare the actual returns with the expected returns. (20 marks) b. Based upon your calculations, select the manager with the best performance. (10 marks) of $1.000 a coupon interest rate
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