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Henry was comparing two small capitalization funds. Fund X had an annual return of 18 percent and a standard deviation of 10 percent; fund Y
Henry was comparing two small capitalization funds. Fund X had an annual return of 18 percent and a standard deviation of 10 percent; fund Y had an annual return of 13 percent and a standard deviation of 5 percent. The risk-free rate is 3 percent. Compute the Sharpe ratios and indicate which fund is more attractive
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1.5%, Fund X
2.0%; Fund Y
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