(Equity) Assume both Portfolio Manager X & Y know with absolute certainty that one period from now, Sector 1 will return 15%, Sector 2 will return -15%, and the SP500 will return 8%. Both PM X & Y use the SP 500 as a benchmark, want to maximize return on equity, and pay no taxes. Portfolio X is long only with $200M of invest in either Sector 1 or Sector 2. Portfolio Y only has $100M of equity to invest in either sector, but can also short $100M of either sector and reinvest the proceeds. One period from now, which of the following statements is most likely TRUE: a) PM X will outperform the benchmark by 7% and PM Y will outperform the benchmark by 38% b) PM X will outperform the benchmark by 7% and PM Y will outperform the benchmark by 37% c) PM X will outperform the benchmark by 7% and PM Y will outperform the benchmark by 22% d) PM X will outperform the benchmark by 7% and PM Y will outperform the benchmark by 7% e) None of the above