Two investment advisors are comparing performance

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Two investment advisors are comparing performance. Advisor A had a 20% rate ofretum and Advisor B a 9.5% rate of return. However, the beta of the Advisor A was 2.5, whereas that of the second was 0.8. If the t- bill rate was 2% and the market return was 10%, which investor was the better stock picker?

Reference no: EM132063439

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