Two brokers at Morgan Stanley: Bob and Simon are comparing their performance last year. Bobaveraged a 19% rate of return on his portfolio, while Simon averaged a 16% rate of return. The beta forBobs portfolio is 1.5 while the beta for Simons portfolio is 1.1. Assume that the return on the market is14% and the risk-free rate is 6%. Bob boasts to Simon that since his portfolio earned a higher return thanSimons, Bob did a better job managing his portfolio. Is Bob correct? Explain your answer