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You are trying to choose between two investments. Stock A has an expected return of 15 percent with a standard deviation of 30 percent over
You are trying to choose between two investments. Stock A has an expected return of 15 percent with a standard deviation of 30 percent over the next year. Stock B has an expected return of 20 percent with a standard deviation of return of 45 percent. The risk-free rate of interest is 3 percent. What is the Sharpe Ratio for each of these investments? Select the choice that is closest to your answer. Stock A: 2; Stock B: 2.5 Stock A: 2.5; Stock B: 2.65 Stock A: 0.4; Stock B: 0.38 Stock A: 0.5; Stock B: 0.44
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