Your retirement account offers the option of investing in treasury bills which yields 5% and one of these following three diversified mutual funds:
expected return standard deviation
fidelity Magellan. 16% 32%
vanguard s&p 500. 14% 24%
Barclays internet index. 12% 15%
1. calculate the Sharpe ration of each mutual fund
2. which mutual fund should you choose? explain