An advisor is evaluating two funds with the same 5-year annualized return of 9%. Fund X has a Sharpe ratio of 0.8 and Fund Y has a Sharpe ratio of 1.3. The advisor should generally recommend:
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A
Fund X, because lower Sharpe ratios indicate more conservative investing
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B
Fund Y, because it provides better risk-adjusted returns
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C
Neither, because absolute returns are equal
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D
Fund X, because it has higher volatility which means higher potential