An equity manager makes the following statements: Statement $1$: If the beta is $0,$ there is no systematic risk and the return is equal to the risk$-$free rate. Statement $2$: If the actual return on a portfolio is greater than the expected return, it means that the portfolio manager has made superior returns for the amount of systematic risk that were taken. This extra return is referred to as beta. Questions $1.$ Indicate whether Statement $1,$ made by the equity manager, is true or false: A$.$ True B$.$ False $2.$ The statement by the equity manager $($Statement $2)$ is correct in terms of which of the following: Superior returns A$.$ False B$.$ False C$.$ True D$.$ True Case study B Extra return False True True False