Question
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. If the T-bill rate were 7% and the market return during the period were 10%, which investor would be the superior stock selector?
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Entrepreneurial Finance Venture Capital Deal Structure And Valuation
Authors: Janet Kiholm Smith, Richard L. Smith
2nd Edition
1503603210, 978-1503603219
