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Two investment advisers are comparing performance. One averaged a 17% rate of return and the other a 13.5% rate of return. However, the beta of
Two investment advisers are comparing performance. One averaged a 17% rate of return and the other a 13.5% rate of return. However, the beta of the first investor was 1.5, whereas that of the second was 1. Can you tell which investor was a better selector of individual stocks (aside from the issue of general movements in the market)?
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