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The table below gives the after-fee performance of various assets: Asset X-fund Y-fund Market portfolio Risk-free asset Er) 12% 8% 10% 2% 25% 20% 15%

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The table below gives the after-fee performance of various assets: Asset X-fund Y-fund Market portfolio Risk-free asset Er) 12% 8% 10% 2% 25% 20% 15% B 1.2 0.6 0 17% 18% An investor who is going to add one of the two stock funds to her well-diversified portfolio will invest in: Select one: O A. The Y-fund because it has the higher Treynor measure. O B. The Y-fund because it has the lower residual standard deviation. O C. The X-fund because it has the higher Treynor measure. OD. The X-fund because it has the higher return. O E. The X-fund because it has the higher Sharpe ratio

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