Question: EC is considering adding a mutual fund to her diversified portfolio. Which of the following is the best choice based on risk and return? a.

EC is considering adding a mutual fund to her diversified portfolio. Which of the following is the best choice based on risk and return?

a. Mutual fund A: expected return of 12%, beta of 1.3. b. Mutual fund B: expected return of 14%, beta of 1.2. c. Mutual fund C: expected return of 16%, beta of 1.2. d. Mutual fund D: expected return of 15%, beta of 0.9.

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