Question: The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below Fund A B S&P 500 Avg

The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below Fund A B S&P 500 Avg 13.0% 18.5% 15.5% 12% 4.0% Std Dev 30.0% 34.5% 25.5% 20% Beta 1.25 1.50 1.30 1 is If these portfolios are subcomponents that make up part of a well-diversified portfolio, then portfolio preferred S&P 500

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