Question: Problem 6-3 A portfolio's expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. Which of the following would make

Problem 6-3

A portfolio's expected return is 12%, its standard deviation is 20%, and the risk-free rate is 4%. Which of the following would make for the greatest increase in the portfolio's Sharpe ratio? (Select all that apply.)

An increase of 1% in expected return. A decrease of 1% in the risk-free rate. A decrease of 1% in its standard deviation.

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