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

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.

Investment 1: | 2% | 8% | -4% | 6% Investment 2: 1 696 | 12% | -8% | 10%

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