Jonathans portfolio has an expected return of 22 a standard


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.

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Financial Management: Jonathans portfolio has an expected return of 22 a standard
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