Portfolio Management Q116
| Investor | Expected Standard Deviation | Beta |
| Daniel | 30 | 1.60 |
| David | 25 | 1.80 |
| Diana | 20 | 1.40 |
Given that the expected market risk premium is 7.5%, which of the
following investors has the lowest expected return?
- Option : C
- Explanation : Diana will have the lowest expected return because her investment has the lowest beta value. The value of the risk-free rate will not matter here.
