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You have the following information in your hand. Which combination of returns and standard deviation provides the highest Sharpe ratio? Assume a 3% risk free
You have the following information in your hand. Which combination of returns and standard deviation provides the highest Sharpe ratio? Assume a 3% risk free rate.
a.return = 21%, standard deviation = 25%
b.return = 12%, standard deviation = 20%
c.return = 15%, standard deviation = 22%
d.return = 25%, standard deviation = 35%
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