A portflio expected return is 12 its standard deviaiton is


A portflio expected return is 12% its standard deviaiton is 20%, and the risk-free rate if 4%. Which of the following would make for the greatest increase in the portfolio's Sharpe ratio?

a. An increase of 1% in expect return.
b. A decrease of 1% in the risk-free rate.
c. A decrease of 1% in its standard deviation

 

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Finance Basics: A portflio expected return is 12 its standard deviaiton is
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