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Ayoub s portfolio has an expected return of 1 8 % , a standard deviation of 1 2 % , and a beta of 1

Ayoubs portfolio has an expected return of 18%, a standard deviation of 12%, and a beta of 1.2. Inderbirs portfolio has an expected rate of return of 16%, a standard deviation of 11%, and a beta of 0.9. The risk-free rate is 5%. According to the Treynor measure,
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The portfolios are equally desirable.
Inderbir has the better portfolio.
The answer depends on Ayoubs and Inderbirs risk tolerance.
Ayoub has the better portfolio.

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