Question: Problem 6: Two investment advisors are comparing performance. One averaged a 19% rate of return and the other a 16% rate of return. However, the

Problem 6: Two investment advisors are comparing performance. One averaged a 19% rate of return and the other a 16% rate of return. However, the beta of the first investor was 1.5, whereas that of the second investor was 1. Part a: Can you tell (without more information) which investor was a better selector of individual stocks (aside from the issue of general movements in the market)? Part b: If the T-bill rate was 6% and the market return during the period was 14%, which investor would be considered the superior stock selector? Part c: If the T-bill rate was 3% and the market return was 15%
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