Consider the following data for two investments, A and B: a. Which investment provides the higher return?

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Consider the following data for two investments, A and B:


Consider the following data for two investments, A and B:


a. Which investment provides the higher return? Which investment provides less risk? Explain.
b. Given a risk-free rate of 2%, calculate the Sharpe ratio for each investment. Which investment provides the higher reward per unit of risk?Explain.

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