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An investor is considering investing in two mutual funds: Fund A: Sharpe Ratio = 0.7 Fund B: Sharpe Ratio = 0.9 If the risk-free rate

An investor is considering investing in two mutual funds:
•Fund A: Sharpe Ratio = 0.7
•Fund B: Sharpe Ratio = 0.9 If the risk-free rate is 4%, determine which fund offers better risk-adjusted returns.

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