Portfolio S has a return of 15% and standard deviation of 12%. Portfolio Q has a return of 25% and standard deviation of 20%. The risk-free rate is 4%. Assuming the two portfolios returns are uncorrelated, the Sharpe ratio for a new portfolio with equal allocations to Portfolio S and Portfolio Q is

Select one:

a. 1.40

b. 0.71

c. 1.05

d. 0.85

e. 1.37