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jakoby Investments has earned the following returns on its four asset classes along with their standard deviations. If the risk free security returned 3.5% during

jakoby Investments has earned the following returns on its four asset classes along with their standard deviations. If the risk free security returned 3.5% during the same year, which asset class had the best risk-return profile?

Asset Class Return SD
Large Stocks 9.55% 24.3%
Real Estate 10.52% 21.3%
Govt. Bonds 6.27% 8.4%
Private Equity 15.6% 31.4%

A) Large Stocks

B) Govt. Bonds

C) Private Equity

D) Real Estate

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