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An investor is considering two investment options: Option A: Expected return of 12% with a standard deviation of 15%. Option B: Expected return of 10%
An investor is considering two investment options:
- Option A: Expected return of 12% with a standard deviation of 15%.
- Option B: Expected return of 10% with a standard deviation of 10%.
Calculate the Sharpe ratio for each option and determine which investment provides the better risk-adjusted return.
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