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The CEO and CFO of Coral Gables Corp were having a discussion about which stock to buy with the company's surplus cash. The CFO noted

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The CEO and CFO of Coral Gables Corp were having a discussion about which stock to buy with the company's surplus cash. The CFO noted that it was important that the company Incurs less risk for a given level of return and suggested using the Sharpe Ratio to choose between AMD and Intel. They both noted that the expected return on AMD in the next year is 12% and the average return on INTC Is 996, however the standard deviation on AMD is 0.13164 and on INTC is 0.11140. Assuming the risk-free rate Ris expected to be 3% what are the Sharpe Ratios of AMD and INTC, and which is the better investment based on these ratios? OSAMD - 0.54S INTC -0.68: INTC SAMD - 0.68: S INTC -0.54; AMD O SAMD -0.68: S INTC -0.54: INTC O SAMD=0.54: SINTC -0.68; AMD

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