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QUESTION 6 Investment advisor X had a return last year of 20% and a beta of 1.5. Investment advisor Y had a return of 16%

QUESTION 6

Investment advisor X had a return last year of 20% and a beta of 1.5. Investment advisor Y had a return of 16% and a beta of 0.9. The risk-free rate during the year was 4% and the market return was 18%. Which advisor had the best risk-adjusted performance?

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