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Two investment advisers are comparing performance. One averaged a 20% return and the other a 17% return. However, the beta of the first adviser was
Two investment advisers are comparing performance. One averaged a 20% return and the other a 17% return. However, the beta of the first adviser was 2.0, while that of the second was 1.5. If the T-bill rate were 5% and the market return during the period were 14%, which of the following options is closest to their alphas?
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