Business, 07.05.2021 21:20 itsmaddierae11

A portfolio manager in Absurdistan is using the Sharpe ratio to compare two Absurdistani assets and based on the result preferred one of them. Assuming the expected risk and expected return for both assets do not change, does the Sharpe Ratio envision any future circumstance when the portfolio manager might change her mind, or will one asset always be preferred? Asset x: Return 6%, Risk 3%
A. Asset Y: Return 10%, Risk 11%
B. Asset Y will always be preferred. Asset X will always be preferred.
C. Sometimes Asset X will be preferred and sometimes Asset Y will be preferred

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A portfolio manager in Absurdistan is using the Sharpe ratio to compare two Absurdistani assets and...

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