The following chart displays various fund manager details:Manager — Alpha — BetaManager A — -1...

Manager D combines a positive alpha with the highest beta in the table. Alpha indicates performance relative to the return expected for the portfolio ' s level of systematic risk. A positive alpha indicates that the manager generated performance above that expected from market exposure, whereas a negative alpha indicates underperformance relative to that expectation. Beta measures sensitivity to movements in the market: a beta greater than 1 indicates that the portfolio is expected to move more strongly than the market. IFC examples show that a portfolio with a beta of 1.4 would be expected to rise approximately 14% when its benchmark rises 10%. Assuming the normal positive market-return environment implied by “likely,” Manager D ' s beta of 2.75 plus positive alpha gives the highest expected overall return. Therefore, D is correct.