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Select one: a. Portfolio 2 b. Portfolio 3 c. Portfolio 1 d. Portfolio 4 Given the following information for four diversified Portfolios 1-4, which portfolio

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Select one:

a. Portfolio 2

b. Portfolio 3

c. Portfolio 1

d. Portfolio 4

Given the following information for four diversified Portfolios 1-4, which portfolio you should select to have the best risk-return trade-off? Portfolio 1 Portfolio 2 Portfolio 3 Portfolio 4 Return 12% 11% 15% 13% Standard deviation 19% 18% 21% 22% Beta 1.2 0.9 1.1 1.4 Risk free rate of return = 5%

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