Question: A portfolio manager has maintained an actively managed portfolio with a beta of 0.2. During the last year the resk-free rate was 5% and the

A portfolio manager has maintained an actively managed portfolio with a beta of 0.2. During the last year the resk-free rate was 5% and the equities performed very badly providing a return of -30%. The portfolio manager produced a return of -10% and claims that in the circumstances it was good. Discuss

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