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Stock A has expected return of 12% and standard deviation 25%. Stock B has expected return of 14% and standard deviation 30%. Given the risk-free
Stock A has expected return of 12% and standard deviation 25%. Stock B has expected return of 14% and standard deviation 30%. Given the risk-free rate of return of 2%, which stock: A or B is a better investment based on Sharpe ratio?
| a. | The two stocks have the same Sharpe ratio | |
| b. | A | |
| c. | B | |
| d. | not enough information is provided |
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