5. A measure of risk-adjusted performance that is often used in practice is the Sharpe ratio. The Sharpe ratio is calculated as the risk premium of an asset divided by its standard deviation. The standard deviations and returns for the funds over the past 10 years are listed here. Assuming a risk-free rate of 4 percent, calculate the Sharpe ratio for each of these. 10-Year Annual Return Standard Deviation Arias S&P 500 Index Fund 9.15% 19.35% Arias Small-Cap Fund 14.05 26.82 Arias Large-Company Stock Fund 9.53 23.82 Arias Bond Fund 8.73 1 1.45