You have researched information on 3 mutual funds. If the risk-free rate is currently 5.5%, which one of these funds has the best risk-adjusted performance?

Fund Q:

Average annual return: 8.21%

Standard deviation: 7.00%

Beta coefficient: 0.921

Fund R:

Average annual return: 11.55%

Standard deviation: 13.52%

Beta coefficient: 1.100

Fund S:

Average annual return: 12.00%

Standard deviation: 16.05%

Beta coefficient: 1.825

A. Fund S, because it has the highest Treynor ratio

B. Fund R, because it has the highest Sharpe ratio

C. Fund S, because it has the highest rate of return

D. Fund Q, because it has the lowest standard deviation