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a . The expected rate of return for portfolio A is % . ( Round to two decimal places. ) The standard deviation of portfolio
a The expected rate of return for portfolio is Round to two decimal places.
The standard deviation of portfolio is Round to two decimal places.
b The expected rate of return for portfolio B is Round to two decimal places.
The standard deviation for portfolio B is Round to two decimal places.
c Based on the risk as measured by the standard deviation and return as measured by the
expected rate of return of each stock, which investment is better? Select the bext
choice below.
A Portfolio is better because it has a higher expected rate of return with more risk.
B Portfolio is better because it has a lower expected rate of return with less risk.
C Based on risk alone, portfolio is better because it has lower risk; and based on
return alone, portfolio is better because it has a higher return.
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