Question: From the below information about two portfolios, explain which one is better investment option based on the Sharpe ratio. Calculate Sharpe ratio step-by-step with formulae

From the below information about two portfolios, explain which one is better investment option based on the Sharpe ratio. Calculate Sharpe ratio step-by-step with formulae without excel sheet (10 Marks)

	Portfolio X	Portfolio Y
Annual Return (Rp)	7.6%	8.9%
Risk-free Return (Rf)	5%	5%
Standard deviation of portfolios return (p)	0.12	0.23

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