The performance of the Venus Fund, a common stock mutual fund, compared with that of the S&P 500 during a ten-year period follows:

Dazzy Vance is considering investing in either the Venus Fund or another mutual fund whose objective is to track the performance of the S&P 500. Assuming that your decision is based solely on past performance, which fund would you recommend that Dazzy select? Justify your answer using various measures of risk-adjusted performance.

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Average quarterly excess return Standard deviation of quarterly excess returns Beta Venus Fund 0.6% 9.9 1.10 S&P 500 0.5% 6.6 1.00