James and Alex are planning to invest some of their savings in one of the funds listed in the table. James is currently holding a well-diversified portfolio. Alex is a new investor and only has the capacity to invest in one fund at a time. The risk-free rate is 1.5% and expected market risk premium is 5%. Based on the information in the table, which fund should James and Alex choose? (Expected Return is the forecasted return based on the fund performance.)

Funds	Beta	Expected Return	Standard Deviation
A	1.5	17%	26%
B	0.8	13%	18%
C	1.2	12%	22%

a.Both James and Alex should invest in fund C.

b.James should invest in fund B and Alex should invest in fund A.

c.Both James and Alex should invest in fund B.

d.James should invest in fund A and Alex should invest in fund B.