Reference no: EM133061138
As an analyst at JPMorgan Chase, you are comparing the performances of two investors. Investor A averaged a 25% rate of return and Investor B had a 22% rate of return. The beta of Investor A was 2.4, whereas that of the other was 1.2. If the T-bill rate was 5% and the market return during the period was 15%. Please choose all correct answers. Please also note that each incorrect answer will reduce the score by 10%.
Please choose all correct answers. Please also note that each incorrect answer will reduce the score by 10%.
1. Investor B is better than Investor A because Investor A has a higher alpha than Investor B.
2. Investor A is better than Investor B because Investor A has a higher alpha than Investor B.
3. The required returns for investor B is 17%
4. The required returns for investor A is 28%
5. The required returns for investor A is 11.5%
6. The required returns for investor B is 15.60%
7. Investor B is better than Investor A because Investor B has a higher alpha than Investor A
8. The required returns for investor B is 16%
9. The required returns for investor A is 29%
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