# Question

Consider the following returns for two investments, A and B, over the past four years:

a. Which investment provides the higher return?

b. Which investment provides less risk?

c. Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. Which investment has performed better?Explain.

a. Which investment provides the higher return?

b. Which investment provides less risk?

c. Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. Which investment has performed better?Explain.

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