Question: You will get down vote if you copy the answer from other questions or get it wrong There are two mutual fund managers. Manager 1

You will get down vote if you copy the answer from

You will get down vote if you copy the answer from other questions or get it wrong

There are two mutual fund managers. Manager 1 eamed 21% in the past year, whereas manager 2 eamed 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 (i.e. who performed better on risk-adjusted basis)? (hint: compare the actual return with the expected return according to CAPM) uch information provided Both performed equally Manager 2 Manager 1

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