Question: A portfolio's expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. Which one of the following would make for

A portfolio's expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. Which one of the following would make for the smallest increase in the portfolio's Sharpe ratio? A) A decrease of 1% in the risk-free rate B) An increase of 1% in the portfolio expected return C) A decrease of 1% in the portfolio standard deviation OD) All of the above lead to the same Sharpe ratio

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