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 14.00 % 29.50 % 1.15
B 16.00 % 25.00 % 1.20
C 18.00 % 34.00 % 1.40
S&P 500 12.00 % 19.00 % 1.00
rf 5.50 %

What is the M2 measure for portfolio B?

1.94%
1.48%
.95%
.48%

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