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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
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. For correct answer(s), click the option to place a check mark. For incorrect answer(s), leave blank.)
A 1 percentage point increase in expected return. | |
A 1 percentage point decrease in the risk-free rate. | |
A 1 percentage point decrease in its standard deviation. |
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