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 B

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
B 20.5 % 30.0 % 1.35
A 14.5 % 25.0 % 1.10
C 17.0 % 20.0 % 1.15
S&P 500 11 % 16 % 1
rf 6.0 %

If these portfolios are subcomponents that make up part of a well-diversified portfolio, then portfolio ______ is preferred.

S&P 500
C
A
B

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