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Suppose that you have the following information about four mutual funds. Each is composed of some mix of stocks and bonds. Name of fund Sharpe

Suppose that you have the following information about four mutual funds. Each is composed of some mix of stocks and bonds.

Name of fund

Sharpe ratio

Admiral Fund

0.1073

Bolo Fund

0.2628

Carocol Fund

0.9252

Dresner Fund

0.5599

Suppose that you are limited to these four mutual funds. Among these four, which one is optimal (or, at least, the most optimal)?

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