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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 a standard deviation of and a beta of Inderbirs portfolio has an expected rate of return of a standard deviation of and a beta of The riskfree rate is 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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