A fund has employed three investment managers, each of whom is responsible for investing in...
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Finance
A fund has employed three investment managers, each of whom is responsible for investing in one-third of all asset classes so that the fund has a well-diversified portfolio. Information about the managers is given below.
Manager
Ave. Return (%)
(%)
X
6
10
1.1
Y
11
20
0.9
Z
12
25
1.5
S&P 500 (M)
7.5
18
1
Risk-free rate (Rf)
3
Using raw returns, which manager has the best performance?
Question 5 options:
Manager X
Manager Y
Manager Z
Not enough information given.
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