The following table shows the annual returns (in percent) and summary measures for the Vanguard Energy Fund and the Vanguard Health Care Fund from 2005 through 2009.

a. Which fund had the higher average return?
b. Which fund was riskier over this time period?
c. Given a risk-free rate of 3%, which fund has the higher Sharpe ratio? What does this ratioimply?

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Year 2005 2006 2007 2008 2009 Energy 44.60 19.68 37.00 42.87 38.36 Health Care 15.41 10.87 4.43 18.45 20.96 Xenergy = 19.35 = 6.64 Snergy 35.99 ath 15.28 XHealth