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

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Finance

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 11.0 % 28.0 % 1.20
B 13.0 % 24.5 % 1.25
C 16.5 % 31.5 % 1.45
S&P 500 10 % 18 % 1
rf 3.0 %

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

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