You are given the following information about four portfolios and the market returns. A B с D Market Average Return 12% 10% 15% 20% 8% Beta 0.8 1 2 1 STD. 16% 30% 45% 15% If an investor wants to include A, B, C, or D into their already well-diversified portfolio, which would be the most preferable? B C D None of the above. 1.2 20%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are given the following information about four portfolios and the market returns.
A
B
C
12%
10%
15%
1.2
0.8
1
20%
16%
30%
Average Return
Beta
STD.
A
If an investor wants to include A, B, C, or D into their already well-diversified portfolio, which would be the most preferable?
B
C
D
D
20%
2
45%
None of the above.
Market
8%
1
15%
Transcribed Image Text:You are given the following information about four portfolios and the market returns. A B C 12% 10% 15% 1.2 0.8 1 20% 16% 30% Average Return Beta STD. A If an investor wants to include A, B, C, or D into their already well-diversified portfolio, which would be the most preferable? B C D D 20% 2 45% None of the above. Market 8% 1 15%
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