Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the risk-free rate, average returns, standard devi

The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P...

90.2K

Verified Solution

Question

Accounting

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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the following reaction: HC2H3O2(aq)+H2O(l)⇌H3O+(aq)+C2H3O−2(aq) Kc=1.8×10−5 at 25∘C If a solution initially contains 0.180 M HC2H3O2H, what is...

Chemistry
Q

please explain the steps and the different parts of an ekg (like the line)

Medical Sciences
Q

of capacitance 5 F is connected in the figure The internal resistance of the cell...

Physics
Q

16 12 km 16 cm 13 Ima 12 cm 17 7 yd 10 yd 17...

Geometry
Q

The graph of the function f x log7 x is stretched vertically by a factor...

Calculus
Q

Compute det B where B 1 2 1 0 1 3 3 1

Algebra
Q

4 Question 4 25 points The function w x x 3x is shown in the...

Algebra
Q

Question Content Area Preparing a Schedule of Cash Collections on Accounts Receivable Kailua...

Accounting
Q

19. Determine the initial markup % for the mens sportswear department, which has these figures:...

Accounting
Q

Compute O'Sullivan's current ratio at August 31. 2016. One year ago, the current Select the...

Accounting
Q

Bond Premium, Entries for Bonds Pavable Transactions 12%, receving cash of $6,462,212. Interest on the...

Accounting
Q

Task 1 The following is summary data in the ledger of XYZ Limited on November...

Accounting