Four fund managers are comparing their performance in 2019. The returns generated by their respective portfolios and beta values are given below.

Manager 1: Return = 18.5%; Beta = 1.5

Manager 2: Return = 12%; Beta = 0.80

Manager 3: Return = 15%; Beta = 1.1

Manager 4: Return = 16%; Beta = 1.4

The risk-free rate was 4% in 2019 and the return on the market portfolio was 13%.

Which manager is the best selector of individual securities (aside from the issue of general movements in the market)?

Select one:

a. Manager 1

b. None of them.

c. Manager 4

d. Manager 2

e. Manager 3