Question: Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 7 percent and 4 percent, respectively. Assumr

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 7 percent and 4 percent, respectively. Assumr risk free rate of 2%.

a.) Estimate the Sharpe ratio of each mutual fund

b.) According to the Sharpe ratio, which fund performed better?

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