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Suppose the T-bill rate is 6% and the market expected return is 14%. Two investment advisors are comparing performance: one averages a 19% return and

Suppose the T-bill rate is 6% and the market expected return is 14%. Two investment advisors are comparing performance: one averages a 19% return and the other a 16%. However, the beta of the first advisor is 1.5, while that of the second is 1.0. Which advisor would be the superior stock picker?


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