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16. (3 points) You want to evaluate three mutual funds using the Sharpe ratio for performance evaluation. The risk-free return during the sample period is

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16. (3 points) You want to evaluate three mutual funds using the Sharpe ratio for performance evaluation. The risk-free return during the sample period is 6%. The average returns, standard deviations, and betas for the three funds are given below, as are the data for the S&P 500 Index. Beta 1.5 Fund A Fund B Fund C S&P 500 Average Return 24% 12% 22% 18% Standard Deviation 30% 10% 20% 16% 0,5 1.0 1.0

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