The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below:
Fund Average Standard deviations Betas
A ) 13.5% 26.5% 1.05
B) 20% 30% 1.3
c) 16% 23% 1.10
S&P 12% 17% 1.00
risk free rate = 3%
if this makes up a well diversified portfolio, then ______ portfolio is preferred.