Question: finance problems thx! We are comparing the performance of two different investors, using the CAPM as their reference benchmark. Throughout the last year, investor A

finance problems thx!finance problems thx! We are comparing the performance of two different investors,

We are comparing the performance of two different investors, using the CAPM as their reference benchmark. Throughout the last year, investor A achieved a 19% rate of return and investor B achieved a 16% rate of return. We calculated the beta of both investors and found that the beta of investor A was 1.5, while the beta of investor B was 1. We also know that the risk-free rate during the period was 6% and the market risk premium during the period was 7%. a) Calculate the alphas achieved by investor A and by investor B. (2 POINTS) O A. alpha A =2.5 alpha B = 3 O B. alpha A =2.0 alpha B = 3.5 O C. alpha A =3 alpha B = 2.5 OD. alpha A =2.5 alpha B = 3.5

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