Mutual Fund a Earned 10 Percent While B Earned 8

question 25

Essay

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. According to the Sharpe ratio, which fund performed better?

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Definitions:

Ownership

The legal right to possess, use, and dispose of property or an asset.

Watercourse

A natural or man-made channel through which water flows, such as a river, brook, or canal.

Land Owner

An individual or entity that holds the legal title or interest in a parcel of land.

Condominium Development

A real estate project involving the division of a property into individual ownership units along with shared ownership of common areas.