Use the Modigliani measure to derive an estimate of what each money managers return should have been given the amount of risk taken.

The Maclures are considering hiring a money manager to deal with their growing portfolio, and they have narrowed down their choices to the following management firms. For each firm, you have details on the historical mean return, portfolio standard deviation, and the risk free rate (see table). Benchmark Manager 2 Manager 3 Manager 4 Manager 5 Mean 9.52% 16.00% 925% 18.00% 7.00% Standard 10.65% 15.00% Deviation 5.60% 25.00% 6.00% Risk-Free Rate 3.50% 3.50% 3.50% 3.50% 3.50%