Austin Kelly is evaluating the performance of 4 large-cap equity funds: A, B, C, and D. As part of his analysis, Austin Kelly computed the Sharpe Ratio and the Treynors measure for all 4 funds. Based on his finding, the ranking of the four founds are as follows:

Fund Treynor Sharpe

A 1 4

B 2 3

C 3 2

D 4 1

The difference in rankings for Funds A and D is most likely due to __________.

Group of answer choices

None of the above

Degree of diversification

Risk premium

Beta