Jonathan's portfolio has an expected return of 22%, a standard deviation of 18%, and a beta of 1.6. Jason's portfolio has an expected rate of return of 16%, a standard deviation of 11%, and a beta of 1.2. The risk-free rate is 3%. According to the Sharpe measure,
Jonathan has the better portfolio.
Jason has the better portfolio.
The portfolios are equally desirable.
The answer depends on Jonathan’s and Jason’s risk tolerance.