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

A portfolio manager has maintained an actively managed portfolio with a beta of 0.2. During the last year, the risk-free rate was 5% and major equity indices performed very badly, providing returns of about 30%. The portfolio manager produced a return of 10% and claims that in the circumstances it was good.
A) Discuss this claim, was it a good return, why or why not?
B) What is the expected return on a portfolio with a beta of 0.2? (Show your calculation)

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