Question: the risk-free rate, average returns, standard deviations and betas for four pension funds are given below. Suppose each pension fund is part of a larger

  1. the risk-free rate, average returns, standard deviations and betas for four pension funds are given below. Suppose each pension fund is part of a larger and well diversified portfolio. With appropriate evaluating measure, ________ has the best performance?

    Stock Avg return Std dev Beta
    A 6% 10% 0.8
    B 10% 18% 1.2
    C 15% 14% 1.4
    D 17% 15% 1.6
    Risk free 5%

    Fund A

    Fund B

    Fund C

    Fund D

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