OK, letting x be height and b radius of smaller,
then x/b=h/r, and
volumeof smaller is 1/3pi(h-x)b^2, or
1/3pi(h-x)(x^2r^2/h^2=
1/3pi((x^2r^2/h)-(x^3r^2/h^2).
Now differinate with respect to x,
and set to 0, so
((2xr^2/h)-(3x^2r^2/h^2)=0,
so you get x=2/3h.
So, fraction is ((1/3pi(h-2/3h)(4/9r^2)/(1/3pir^2h)= 4/27