Question: 33) The Fidelity Magellan Fund has a return (expected return) of 20% and a standard deviation of 25%. The T. Rowe Price Blue Chip Growth

 33) The Fidelity Magellan Fund has a return (expected return) of

33) The Fidelity Magellan Fund has a return (expected return) of 20% and a standard deviation of 25%. The T. Rowe Price Blue Chip Growth Fund has a return (expected return) of 20% and a standard deviation of 20%. The risk-free rate is 10%. Based upon the Sharpe Ratio (the reward- to-variability ratio), which of these mutual funds is more attractive? A) Fidelity Magellan Fund B) They are the same C) Cannot determine D) T. Rowe Price Blue Chip Growth Fund

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