Suppose the CAPM holds, and Alice holds her optimal portfolio, which puts weight 1% on Starbucks and 1% on Google. Starbucks has a Sharpe ratio of 0.5 and Google has a Sharpe ratio of 0.7. What happens to Alice's Sharpe ratio if she decreases the weight on Starbucks to 0.99% and increases the weight on Google to 1.01%?

• A. It increases
• B. It decreases
• C. It stays the same
• D. There is not enough information to answer