During a particular year the t-bill rate was 6 the market

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During a particular year, the T-bill rate was 6%, the market return was 14%, and a portfolio manager with beta of .5 realized a return of 10%.

a. Evaluate the manager based on the portfolio alpha.

b. Reconsider your answer to part (a) in view of the Black-Jensen-Scholes finding that the security market line is too flat. Now how do you assess the manager's performance?

Reference no: EM13574674

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