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Portfolio construction

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Which option to select if one can invest in T-bills and only one other option?

RoR Beta SD
Portfolio A 12.00% 0.7 12.00%
Portfolio B 16.00% 1.4 31.00%
T-Bills 5.00%
S&P 500 13.00% 18.00%

ROR=Rate of return
SD= standard deviation

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Solution Summary

Evaluates which portfolio is to be selected if one can invest in T-bills and only one other option.

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