Question: 9. Two fund managers are comparing performance. One averaged 19% return and the other a 16% return. However, the beta of the first fund was

 9. Two fund managers are comparing performance. One averaged 19% return

9. Two fund managers are comparing performance. One averaged 19% return and the other a 16% return. However, the beta of the first fund was 15, while that of the second was 1.o (a) Can you tell which fund manager was a better selector of individual stocks (aside from the issue of general movements in the market)? (b) If the T-bill rate were 6% and the market return during the period were 10%, which manager would be the superior stock selector? (c) What if the T-bill rate were 3% and the market return were 15%

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