Question: The following table shows the average return and standard deviation of four well diversified portfolios over the last five years. Portfolio Average Return Standard Deviation

The following table shows the average return and standard deviation of four well diversified portfolios over the last five years.

Portfolio

Average Return

Standard Deviation

A

.16

.06

B

.10

.08

C

.11

.12

D

.13

.17

Which of the following portfolios would all risk-averse investors prefer if they had to invest in it today?

A

B

C

D

Cannot be determined

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