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If the risk-free rate is 5.5 percent, which of these portfolios has the highest reward-to-risk ratio? Show your work. Portfilio 1 Security Amount Invested Expected

If the risk-free rate is 5.5 percent, which of these portfolios has the highest reward-to-risk ratio? Show your work.

Portfilio 1
Security Amount Invested Expected Return Beta
Security A $4000 9% .80
Security B $5000 12% 1.15
Security C $12000 14% .95
Security D $8000 15%

1.23

Portfolio 2
Security A $3000 16% 1.22
Security B $11000 13% 1.54
Security C $9000 8% .87
Security D $6000 11% .81
Portfolio 3
Security A $15000 10% 1.72
Security B $12000 9% .81
Security C $3000 12% .72
Security D $2000 15% 1.54

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