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A portfolios expected return is 12%, the standard deviation of 20%, and the risk-free rate is 4%. Answer the following: What is the portfolios Sharpe
- A portfolios expected return is 12%, the standard deviation of 20%, and the risk-free rate is 4%. Answer the following:
- What is the portfolios Sharpe ratio?
- Which of the following would make for the greatest increase in the portfolios Sharpe ratio? (Show your calculations)
- 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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