Question: Two investment advisers are comparing performance. Advisor A averaged a 15% return with a portfolio beta of 1.2, and advisor B averaged a 16% return

Two investment advisers are comparing performance. Advisor A averaged a 15% return with a portfolio beta of 1.2, and advisor B averaged a 16% return with a portfolio beta of 1.5. If the T-bill rate was 5% and the market return during the period was 13%, which advisor was the better stock picker?

Advisor B was better because he/she generated a larger alpha

Advisor A was better because he/she achieved a lower beta

Advisor A was better because he/she generated a larger alpha

Advisor B was better because he/she generated a higher return

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