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Joaquim recently learned about a fund that boasted a 25% return in its marketing materials. Eagerly, he invested $100,000 without doing any research into the

    1. Joaquim recently learned about a fund that boasted a 25% return in its marketing materials. Eagerly, he invested $100,000 without doing any research into the fund. A year later, he had $125,000 in the bank. However, he was not pleased with the high return once he learned about the Sharpe Ratio. 

    2. What is the most likely reason, why?


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