Fund A Fund B

Beta 1.75 1.07

Investor A 18% 82%

Investor B 82% 18%

The portfolio beta of investor A is? (Round to two decimal places.)

The portfolio beta of investor B is? (Round to two decimal places.)

(Select the best answer below.)

A. Investor A would more likely be the retired couple because they would want to have low risk. Investor B's portfolio is much riskier, with a portfolio beta of 1.19 vs. 1.63 for Investor A's portfolio.

B. Investor B would more likely be the retired couple because they would want to have low risk. Investor A's portfolio is much riskier, with a portfolio beta of 1.63 vs. 1.19 for Investor B's portfolio.

C. Investor A would more likely be the retired couple because they would want to have low risk. Investor B's portfolio is much riskier, with a portfolio beta of 1.63 vs. 1.19 for Investor A's portfolio.

D. Investor B would more likely be the retired couple because they would want to have low risk. Investor A's portfolio is much riskier, with a portfolio beta of 1.19 vs. 1.63 for Investor B's portfolio.