Question: Jonguim recenty learned about a fund that boasted a 2 5 % return in its marketing materals. Eagerly, he nvested $ 1 0 0 ,

Jonguim recenty learned about a fund that boasted a 25% return in its marketing materals. Eagerly, he nvested $100,000 without dong any research into the fund. A year later, he hed $125,000 in the bank. However, he was not piensed with the high retum once he lasmed: chout the Sharpe Ratio. What is Whe most ikely reason who?
He leamed that the portfolio's volatity was 50%, so he could have made or lost $50,000. Toking on this level of risk may not justify the return:
He learned that the portiolio's volatity was 50%, so he could have lost $100,000. Taiking on this level of risk may not justify the return.
He leamed that the portlolio's volatity was 5%, so he could have lost $5,000. Taing on this level of risk may not justify the refurn.
He loaned that the portiolio's volatily was 5%, so he could have made $100,000. Taking on this level of risk justites the retum.
Jonguim recenty learned about a fund that boasted

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