The risk-free rate, average returns, standard deviations, and beteas for three funds and the S&P 500 are given below. Fund Avg Std Dev Beta 18% 25% 20% S&P 500 15% 300%1.05 35% 25% 2090 1.3 1.0 rz 1396 If these portfolios are subcomponents that make up part of a well-diversified portfolio, then portfoliois preferred. O S&P 500