Question: Using the historical returns below, calculate the Sharpe Ratio for each of the stocks. Which stock has the best risk-return trade-off based on the Sharpe

Using the historical returns below, calculate the Sharpe Ratio for each of the stocks. Which stock has the best risk-return trade-off based on the Sharpe Ratio?

SP500 KO XOM GM VZ NVDA rf
Total Holding Period Return 0.837657 0.505198 -0.327224 0.479444 0.587265 15.190752 0.055022
Mean 0.011152 0.007812 -0.003564 0.010877 0.008888 0.055342 0.000893
Standard Deviation 0.044003 0.043788 0.077130 0.093355 0.048517 0.128125 0.000700

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