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You have been hired to evaluate the risk versus return of two prospective investments. One is a venture capital fund which is expected to return
You have been hired to evaluate the risk versus return of two prospective investments. One is a venture capital fund which is expected to return 33% over the next year with a standard deviation of 40%, while the other is an emerging markets equity portfolio which returns 23% with a standard deviation of 20%. The risk-free rate for the year is 2%. Define and describe the criterion you would use to evaluate these two investments from a risk versus return perspective and calculate the result
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