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

The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below. Fund Avg Std Dev Beta A 18.0 % 30.0 % 1.15 B 25.0 % 35.0 % 1.40 C 19.0 % 25.0 % 1.20 S&P 500 15 % 20 % 1 rf 6.5 % If these portfolios are subcomponents that make up part of a well-diversified portfolio, then portfolio ______ is preferred.

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