The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below Fund Std Dev 25.0% 28.0% 220% 16% Beta 1.25 1.50 1.30 Avg 14.5% 20.5% 16.5% 11% 40% S&P 500 If these portfolios are subcomponents that make up part of a well-diversified portfolio, then portfolio is preferred O S&P 500