Which adviser would be the superior stock selector

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Reference no: EM132063086

Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta of the first adviser was 1.5 , while that of the second was 1.

a-) Can you tell which adviser was a better selector of individual stocks ( aside from the issue of general movements in the market)?

b-) If the T-Bill rate were 6% and the market return during the period were 14%, which adviser would be the superior stock selector?

c-) What if the T-Bill rate were 3% and the market return 15%?

Reference no: EM132063086

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