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You are to company two mutual funds' performance using Sharpe's Measure: Mutual Fund A has a return of 15% and a standard deviation of of
You are to company two mutual funds' performance using Sharpe's Measure: Mutual Fund A has a return of 15% and a standard deviation of of 18%. Mutual Fund B has a rate of return of 9% and a standard deviation of 12%. The risk-free rate is 3%. Compute the two funds' Shape's Measure and select the fund that has a better performance. (You must show your work to earn credit.)
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