Portfolio A has an expected return of 18% and a standard deviation of return of 20%. Portfolio B has an expected return of 14% and a standard deviation of return of 5%. What can you tell about the two portfolios? (Continued from the previous question) You are forming a Capital Allocation Line (CAL) using the risk-free asset with a 4% return and the portfolio described in the previous question. What is the slope of the CAL? Round your answer to two decimal places.

Portfolio A has an expected return of 18% and a standard deviation of return of 20%. Portfolio B has an expected return of 14% and a standard deviation of return of 5%. What can you tell about the two portfolios?

Question options: If the risk-free rate is 2%, Portfolio B dominates Portfolio A.

Portfolio A dominates Portfolio B because it has a higher expected return.

Portfolio B dominates Portfolio A because it has a lower standard deviation.

Neither portfolio dominates the other.