Business, 03.08.2019 04:20, h2o12

You are considering investing in one of two well-diversified portfolios. portfolio a has an expected return of 8% and a beta of 1.35 while portfolio b has an expected return of 6% and a beta of 0.80. assuming that you are a rational risk-averse investor and the risk-free rate is 2%, which of the two portfolios should you choose and why?

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You are considering investing in one of two well-diversified portfolios. portfolio a has an expected...