d .00 The table below gives the after-fee performance of various funds: Asset X-fund Y-fund Market portfolio E(r) OE 12% 25% O B. 1.2 17% 8% 20% 0.6 18% 10% 15% 4 Select one: O A. The Y-fund because it has the higher Treynor measure. Risk-free asset An investor who is going to add one of the two stock funds to her well-diversified portfolio will invest in: The Y-fund because it has the lower residual standard deviation. O C. The X-fund because it has the higher return. O D. The X-fund because it has the higher Sharpe ratio. O E. The X-fund because it has the higher beta. 2% F

The table below gives the after-fee performance of various funds: An investor who is going to add one of the two stock funds to her well-diversified portfolio will invest in: Select one: A. The Y-fund because it has the higher Treynor measure. B. The Y-fund because it has the lower residual standard deviation. C. The X-fund because it has the higher return. D. The X-fund because it has the higher Sharpe ratio. E. The X-fund because it has the higher beta