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A portfolio manager earned an average return of 9.32% per year over the last 10 years...

A portfolio manager earned an average return of 9.32% per year over the last 10 years compared to 8.56% per year for the market benchmark (S&P 500 Index). True or False: It is fair for the portfolio manager to claim superior performance because he beat the market.

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True

False

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Answer #1

True, It is fair for the portfolio manager to claim superior performance because the manager outperformed the market in the long run by an almost 1%.

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