Question
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 |
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Beta | 1.761.76 | 1.061.06 | |
Investor A | 15 %15% | 85 %85% | |
Investor B | 85 %85% | 15 %15% | |
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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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