The following table shows the annual returns (in percent) and summary measures for the Vanguard Energy Fund

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The following table shows the annual returns (in percent)

and summary measures for the Vanguard Energy Fund and the Vanguard Health Care Fund from 2005 through 2009. R-96

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a. Which fund had the higher average return?

b. Which fund was riskier over this time period?

c. Given a risk-free rate of 3%, which fund has the higher Sharpe ratio? What does this ratio imply?

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