There are two mutual fund managers. Manager 1 eamed 21% in the past year, whereas manager 2 earned 11% in the past year. The beta of the first margt 1.8, whereas the beta for the second manager is 0.9. Assume CAPM is the correct model. Which manager is a better stock selector (a who performed b risk-adjusted basis)? (hint: compare the actual return with the expected retum according to CAPM) Manager 2 Not enough information provided Both performed equally O Manager 1. QUESTION 6 What is the expected return if stock returns followed this historical distribution: +15%, -5%, -20%, 12%, and +15% ? O 1.25% O2.10% 3.40% 3.25%