4. A measure of risk-adjusted performance that is often used is the Sharpe Ratio. The...

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4. A measure of risk-adjusted performance that is often used is the Sharpe Ratio. The Sharpe Ratio is calculated as the risk premium of an asset divided by its standard deviation. The standard deviation and return of the funds over the past 10 years are listed below. Calculate the Sharpe ratio for each of these funds. You may assume the risk-free rate at 3%. 10-year Annual Return Standard Deviation Bledose S&P 500 Index Fund 10.15% 23.85% Bledose Small Cap Fund 14.83% 29.62% Bledose Large Company Stock Fund 11.08% 26.73% Bledose Bond Fund 8.15% 10.34%

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