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11) Sharpe Ratios: An analysis of different investment categories yields the following mean returns and standard deviations 40% Large Company Stocks Mean = 10%,

11) Sharpe Ratios: An analysis of different investment categories yields the following mean returns and standard deviations 40% Large Company Stocks Mean = 10%, Standard Deviation = 20% Small Company Stocks Mean = 12%, Standard Deviation = 25% Corporate Bonds Mean = 6%, Standard Deviation = 10% High risk new companies = 20%, Standard Deviation = Risk free Short term Government Bills mean = 3%, no standard deviation a) Given above, find each assets Sharpe Ratio Large Company Small Company Corporate Bond High risk new Company b) Given above, which investments should represent the best risk/reward?

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