Which of the Following Funds Is the Best Choice for a Well-Diversified

question 8

Multiple Choice

Which of the following funds is the best choice for a well-diversified investor? $\begin{array}{|c|c|c|c|c|c|} \hline & \text { Balanced Fund } & \text { Growth Fund } & \text { Hedge Fund } & \begin{array}{c}\text { Market } \\\text { Portfolio }\end{array} & \text { Risk-Free Asset } \\\hline \begin{array}{c}\text { Expected } \\\text { Return }\end{array} & 9.3 \% & 11.0 \% & 11.5 \% & 9.0 \% & 3.0 \% \\\hline \text { Standard Dev. } & 26.0 \% & 32.0 \% & 35.0 \% & 22.0 \% & 0 \% \\\hline \text { Beta } & 1.18 & 1.45 & 1.52 & 1.00 & \\\hline\end{array}$

• A)Balanced
• B)Hedge
• C)Growth