The following are Sharpe Ratios: T-Bills = 0; Coll - - 161; Market - 329: USR - 229; High Tech - 345. Which is the preferred investment and why? Economy Prob. T-Bills HT Coll USR MP Recession 0.1 3.0% -29.5% 24.5% 3.5% -19.5% Below avg 0.2 3.0% -9.5% 10.5% -16.5% -5.5% Average 0.4 3.0% 12.5% -1.0% 0.5% 7.5% Above avg 0.2 3.0% 27.5% -5.0% 38.5% 22.5% Boom 0.1 3.0% 42.5% -20.0% 23.5% 35.5% Collections. Lowest risk relative to expected return. T-bills. No risk. High-Tech. Highest excess return relative to risk. Market Market return, market risk outperforms over time