Question: Managed Equity Fund A has returned an average 8% pa. over the last 10 years, with a standard deviation of 15% and Managed Equity Fund

Managed Equity Fund "A" has returned an average 8% pa. over the last 10 years, with a standard deviation of 15% and Managed Equity Fund "B\" has returned 11% p.a., with a standard deviation of 25%. The overall equity market returned 10% pa. with a standard deviation of 20% and risk-free investments provided 3% pa. over the 10-year period. Using the Sharpe ratio, show and discuss the relative performance of the two equity funds verses the overall equity market. (6 marks)

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