use the Sharpe ratio to chose the investment that is better compensating investors for the risk they are taking. The risk free rate is 2%. stock expected return. standard deviation x. 7% 5% y. 10% 10% z. 15% 11% z

Coupon $50 Presentvalue=-679.74 Return S- Use Sharperatio to chose the investment that is better compensating investors for the risk they are taking. The risk free rate is 2). standard Expected Stock Deviation Y 10%. 107 Z 15% E (R;) - Rif 11.1. S=