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Consider the following returns for two investments, A and B, over the past four years: 9 10 78 98-16% 14% 158 Investment 1: Investment 2s a. Calculate the mean for each investment. (Round your answers to 2 decimal places.) Inve b. Calculate the standard deviation for each investment. (Round your answers to 2 decimal places.) Standard Deviation 2
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(a) The mean for investment 1 can be computed as follows: 19+10 – 7+15) =6.75 Thus, the mean for the investment The mean forThe standard deviation for investment 2 can be computed as follows: --30-3)? (7-3.5)’ +(9–3.5)²+(-16–3.5)² + (14 – 3.5)?] V4-(d) Since the Sharpe ratio for investment 1 is more than that of investment 2, therefore, investment 1 has a higher return. (

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