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Consider the following data for two investments, A and B: Investment A: x x = 11 and s = 8Investment B: x x = 9
Consider the following data for two investments, A and B:
Investment A:x
x= 11 ands= 8Investment B:x
x= 9 ands= 6
a-1.Which investment provides the higher return?
- Investment B
- Investment A
a-2.Which investment provides less risk?
- Investment B
- Investment A
b-1.Given a risk-free rate of 1.80%, calculate the Sharpe ratio for each investment.(Round your answers to 2 decimal places.)
Sharpe Ratio
Investment A-
Investment B-
b-2.Which investment provides the higher reward per unit of risk?
- Investment B
- Investment A
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