A 1 percentage point increase in expected return and 1 percentage point decrease in the risk-free rate will have the same impact of increasing Sharpe ratio from 0.40 to 0.45

Think of the CALine and what the sharpe ratio represents.

	A.	A 1 percentage point decrease in its standard deviation.
	B.	A 1 percentage point increase in expected return.
	C.	A 1 percentage point decrease in expected return.
	D.	A 1 percentage point increase in the risk-free rate.