The Mean and Standard Deviation (SD)of Monthly Returns,over a Given

Multiple Choice

The mean and standard deviation (SD) of monthly returns,over a given period of time,for the stock markets of two countries,X and Y are: $$\begin{array} { | c | c | c | } \hline \text { Countr) } & \text { Mean(\%) } & \text { SD(\%) } \\\hline \mathrm { X } & 1.57 & 4.87 \\\hline \mathrm { Y } & 1.92 & 7.64 \\\hline\end{array}$$ Assuming that the monthly risk-free interest rate is 0.25 percent,the Sharpe performance measures,SHP(X) and SHP(Y) ,and the performance ranks,respectively,for X and Y are:

A) SHP(X) = 0.271,rank = 1,and SHP(Y) = 0.219,rank = 2.
B) SHP(X) = 0.271,rank = 2,and SHP(Y) = 0.219,rank = 1.
C) SHP(X) = 18.84,rank = 1,and SHP(Y) = 23.04,rank = 2.
D) SHP(X) = 23.04,rank = 2,and SHP(Y) = 18.84,rank = 1.