The following table shows the annual returns (in percent) andsummary measures for a sample of returns from the Vanguard EnergyFund and the Vanguard Health Care Fund from 2012 through 2016.
| Year | Energy (%) | Health Care (%) |
| 2012 | 44.6 | 15.41 |
| 2013 | 19.68 | 10.87 |
| 2014 | 37 | 10.43 |
| 2015 | -42.87 | -18.45 |
| 2016 | 28.36 | 20.96 |
If the risk-free rate is 3%, using mean-variance analysis, whichfund performed better, and why?
| a. | The Energy Fund performed better, because its Sharpe Ratio washigher. |
| b. | The Health Care Fund performed better, because its Sharpe Ratiowas lower. |
| c. | The Energy Fund performed better, because its Sharpe Ratio waslower. |
| d. | The Health Care Fund performed better, because its Sharpe Ratiowas higher. |
