Which portfolio is more attractive and why:

Portfolio A - Expected returns of 15.5%, asset A has a variance of 22.5 while asset B has a variance of 31.5, the two assets have a 0.15 correlation.

Portfolio B - Expected returns of 12.5% asset A has the same variance of 22.5 while asset B has a variance of 31.5, the two assets have a 0.75 correlation.

Multiple Choice

Portfolio A and B are materially the same, so I would choose either

Portfolio B is a superior choice because it offers a lower expected return with less risk than portfolio A

Portfolio A is a better choice because it has a higher expected return with less risk than portfolio B and has an attractive risk/reward profile