Question: Which stock has the highest risk-adjusted return (= Sharpe ratio)? Assume the risk-free rate is 4%. Stock Expected Return Standard Deviation A 15% 40% B

Which stock has the highest risk-adjusted return (= Sharpe ratio)? Assume the risk-free rate is 4%.

StockExpected ReturnStandard Deviation
A15%40%
B11%20%
C10%30%
D7%10%

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