Andy Green, CFA, and Sue Hutchinson, CFA, are considering adding alternative investments to the portfolio they manage for a private client.After much discussion, they have decided to add a hedge fund to the portfolio.In their research, Mr$.$ Green focuses on hedge funds that have the highest returns, while Ms$.$ Hutchinson focuses on finding hedge funds that can reduce portfolio risk while maintaining the same level of return. After completing their research, Mr$.$ Green proposes two funds, the New Horizon Emerging Market Fund $($NH$),$ which takes long$-$term positions in emerging markets, and the Hi Rise Real Estate Fund $($HR$),$ which holds a highly leveraged real estate portfolio. Ms$.$ Hutchinson proposes two hedge funds:the Quality Commodity Fund $($QC$),$ which takes conservative positions in commodities, and the Beta Naught Fund $($BN$),$ which manages an equity long$/$short portfolio that targets a market risk of zero.The table below details the statistics for the existing portfolio, as well as for the four potential funds.The standard deviation of the market$$s return is $18\%.$ ExistingNHHRQCBN Average Return $10\mathrm{.}00\%20\mathrm{.}00\%10\mathrm{.}00\%6\mathrm{.}00\%4\mathrm{.}00\%$ Standard Deviation $16\mathrm{.}00\%50\mathrm{.}00\%16\mathrm{.}00\%16\mathrm{.}00\%25\mathrm{.}00\%$ Beta $0\mathrm{.}800\mathrm{.}900\mathrm{.}40-0\mathrm{.}200\mathrm{.}00$ Correlation with Existing Portfolio $0\mathrm{.}320\mathrm{.}45-0\mathrm{.}230\mathrm{.}00$ Mr$.$ Green and Ms$.$ Hutchinson have agreed to select the fund that will provide a portfolio with the highest return$-$to$-$risk ratio $($i$.$e$.$ average return relative to standard deviation$).$They have decided to invest $10\%$ of the portfolio in the selected fund.