Back ground info: You are a financial analyst at HAGGISTech, a firm with two foreign direct investment $($FDI$)$ projects under consideration. Given that investments carry inherent risks, HAGGISTech aims to select the project that best enhances its risk$-$reward profile. You will use the Sharpe Ratio and Treynor Ratio for evaluation.

The new project in either Country X or Country Y$.$ Once the project is completed, it will constitute $30$ percent of the firm's total funds invested in itself. The remaining $70$ percent of its investment in its business is exclusively in its home Country Z$.$

Suppose the risk$-$free rate is $5\%.$

I have completed the previous two questions which gave results:

Country x:

Sharpe ratio$-1\mathrm{.}724$

Treynor ratio$-0\mathrm{.}204$

Country y:

Sharpe ratio$-1\mathrm{.}824$

Treynor ratio$-0\mathrm{.}212$

Based on these results please answer the following question:

Based on the evaluations in $($a$)$ and $($b$),$ which project would you recommend for HAGGISTech? How should the Sharpe Ratio and Treynor Ratio of the recommended project be interpreted?