KNOWLEDGE CHECI 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. What is the most likely reason why? He learned that the portfolio's volatility was 5%, so he could have made $100,000. Taking on this level of risk justifies the return. He learned that the portfolio's volatility was 50%, so he could have made or lost $50,000. Taking on this level of risk may not justify the return. He learned that the portfolio's volatility was 50%, so he could have lost $100,000. Taking on this level of risk may not justify the return. He learned that the portfolio's volatility was 5%, so he could have lost $5,000. Taking on this level of risk may not justify the return. 172 fe80 10:8250 Saab:22 AM TFS