Question: Please show the math behind each answer thanks! Investor A has a portfolio average 14% with a beta of 1.3 Investor B Has a portfolio
Please show the math behind each answer thanks!
Investor A has a portfolio average 14% with a beta of 1.3
Investor B Has a portfolio average of 11% with a beta of 1
Risk Free Rate is 5%
A . Can you tell which portfolio held the better selection of stocks?
B. If the market return was 10% who was a better selector of stocks?
C. If the beta for investor A was 1.7 would the answer to question B change, if yes then why?
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