1. A portfolios expected return is 12%, the standard deviation of 20%, and the risk-free rate is 4%. Answer the following:
   1. What is the portfolios Sharpe ratio?
   2. Which of the following would make for the greatest increase in the portfolios Sharpe ratio? (Show your calculations)
      1. An increase of 1% in expected return
      2. A decrease of 1% in the risk-free rate
      3. A decrease of 1% in its standard deviation