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Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta of the first adviser was
Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta of the first adviser was 1.5, while that of the second was 1.0. If the T-bill rate were 3% and the market return were 15%, which adviser would be the superior stock selector?
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