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Suppose a money manager has an average monthly return of 2.20%/month over the past two years. The market's return has averaged 1.20%/month, the riskfree rate
Suppose a money manager has an average monthly return of 2.20%/month over the past two years. The market's return has averaged 1.20%/month, the riskfree rate has averaged 0.60%/month, and the portfolio's beta is estimated to be 1.20. What is the average excess return of this manager (after accounting for risk)?
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