PORTFOLIO AVERAGE ANNUAL RATE OF RETURN STANDARD DEVIATION The following table shows risk and return measures for two portfolios.

Risk and Return

When plotting portfolio $R$ on the preceding table relative to the SML$,$ portfolio

$R$ lies:

Insufficient data given.

On the SML$.$

Above the SML$.$

Below the SML$.$BETA

R $21\%8\%\mathrm{.}7$

S&P $50017\%19\%1\mathrm{.}0$

When plotting portfolio R on the preceding table relative to the SML$,$ portfolio R lies:

$1.$ Insufficient data given.

$2.$ On the SML$.$

$3.$ Above the SML$.$

$4.$ Below the SML$.$