Use the following for the next question:

A mid cap fund A large cap fund Risk-free rate = 4%

Return 16% 14% Expected return of the S&P500 = 12%

Beta 1.6 .8 Standard deviation of the market = 2.8

Std. Dev. 3.6 2.6

2. Rank the three funds from highest to lowest in terms of reward to risk based on systematic risk

A. mid cap, large cap, market

B. large cap, market, mid cap

C. market, mid cap, large cap

D. mid cap, market, large cap

E. large cap, mid cap, market