Stock A has expected return of 12% and standard deviation 25%. Stock B has expected...
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Accounting
Stock A has expected return of 12% and standard deviation 25%. Stock B has expected return of 14% and standard deviation 30%. Given the risk-free rate of return of 2%, which stock: A or B is a better investment based on Sharpe ratio?
a.
The two stocks have the same Sharpe ratio
b.
A
c.
B
d.
not enough information is provided
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