Question: There are two mutual fund managers. Manager 1 earned 21% in the past year, whereas manager 2 earned 11% in the past year. The beta

There are two mutual fund managers. Manager 1 earned 21% in the past year, whereas manager 2 earned 11% in the past year. The beta of the first manager is 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 (e. who performed better on a risk-adjusted basis)? (hint: compare the actual return with the expected return according to CAPM) Manager 1 Not enough information provided Both performed equally Manager 2 QUESTION 14 If the inflation rate is 6%, and a project with a cost of capital of 12% (real) will return $110 in nominal cash next year, what is the PV of the $110 dollars today? $92.65 $92.05 ve and Submit to save and submit. Click Save All Answers to save all answers. Save All Al

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