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QUESTION 3 Choose the one alternative that best completes the statement or answers the question. If the answer is numerical choose the answer that is

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QUESTION 3 Choose the one alternative that best completes the statement or answers the question. If the answer is numerical choose the answer that is closest to yours. Rusty Nail Inc. has an expected return of 10% and a standard deviation of 20%. Mac Tools Corp. has a return of 15% and a standard deviation of 28%%. The return on T-bills is 3% and the standard deviation is 0%. Consider the following investment choices below. The percentages represent how much you allocate to each investment I. 70% in Rusty Nail and 30% in T-bills II. 40% in Rusty Nail and 60% in T-bills III. 20% in Rusty Nail and 80% in T-bills IV. 70% in Mac Tools and 30% in T-bills V. 100% in Mac Tools Which these investment options has the highest Sharpe Ratio? Which these investment options has the highest Sharpe Ratio? O A. I, II and III . O C.IV OD. V OE. I and II OF. I OG.IV and v

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