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You decided to invest only on one of the following two stocks for your investment: Stock A or Stock B. The risk-free interest rate is

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You decided to invest only on one of the following two stocks for your investment: Stock A or Stock B. The risk-free interest rate is 3.90%. Which stock would you choose based on the Sharpe Ratio? Expected return Standard deviation Stock A 7.6% 3.8% Stock B 4.8% 5.4% Stock A, since it has a Sharpe Ratio of 0.97 Stock A, since it has a Sharpe Ratio of 0.17 Stock B, since it has a Sharpe Ratio of 0.17 Stock B, since it has a Sharpe Ratio of 0.97

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