$10$ : Problem $6-10]$You are an ansiyst for a large public penaion fund and you have been assigned the task of evaluating two different external portfolio managers $($Y and Z$).$ You consider

the following hisborical average return, standard deviation, and CAPM beta estimates for these two managers over the past five years.

Additienally, your estimate for the risk premium for the market portfolis is $3\mathrm{.}00$ percent and the risk$-$free rate is currerely $5\mathrm{.}00$ percents.

a$.$ For both Manager Y and Manager Z$,$ calculate the expected return using the CAPM. Found your answers to two decimal plsces

Manager Y:

Manager $Z$:

b$.$ Calculate each fund manager's alpha's $($i$.$e$.,$ actual return minus expected retum$)$ over the flve$-$year halding period. Round your answers to two decimal phares

Manager Y:

Manager Z:

Chosse the correct SML graph: A$,$ B$,$ C$,$ D

Security market Line

c$.$ Explain whether you can conclude from the information in Part b if:

either manager outperformed the other on a risk$-$adjusted basis.

Manager Select $($Y or Z$)$ outperformed the manager Select on a risk$-$adjusted basis.

either manager outperformed market expectations in general.

Manager Select $($ underperformed or outperformed $)$ market expectations in general.

Manager Select $($underperformed or outperformed$)$ underperformed $$ market expectations in general.