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Refer to the table to the below: (Click on the icon located on the top-right corner of the data table below in order to copy

Refer to the table to the below: (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Fund A

Fund B

Beta

1.761.76

1.061.06

Investor A

15 %15%

85 %85%

Investor B

85 %85%

15 %15%

Between Investor A and Investor B, which is more likely to represent a retired couple? Why?

The portfolio beta of investor A is ___

The portfolio beta of investor B is ___

Select the best answer below

A. 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 1.17 vs. 1.66 for Investor B'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 1.66 vs. 1.17 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 1.17 vs. 1.66 for Investor A's portfolio.

D. 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 1.66 vs. 1.17 for Investor A's portfolio.

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