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An investor is evaluating the performance of a hedge fund using the Sortino Ratio. If the fund's average return is 12% and the downside deviation

An investor is evaluating the performance of a hedge fund using the Sortino Ratio. If the fund's average return is 12% and the downside deviation is 6%, calculate the Sortino Ratio. Interpret the ratio in the context of the fund's risk-adjusted performance.

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