The portfolio manager produced a return of - 10 and claims


A portfolio manager has maintained an actively managed portfolio with a beta of 0.2.

During the last year, the risk-free rate was 5% and equities performed very badly providing a return of - 30%. The portfolio manager produced a return of - 10% and claims that in the circumstances it was a good performance. Discuss this claim.

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Finance Basics: The portfolio manager produced a return of - 10 and claims
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