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There are two mutual fund managers. Manager 1 earned 28% in the past year. whereas manager 2 earned 18% in the past year. The beta

There are two mutual fund managers. Manager 1 earned 28% in the past year. whereas manager 2 earned 18% in the past year. The beta of the first manager is 1.8 , whereas the beta for the second manager is 0.9 . Assume the expected risk premium is 12% and risk free rate is 5%. Assume CAPM IS the correct model.

Choices:

Both performed equally

Not enough information provided

Manager 1

Manager 2

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