The Expected Return on the Market Is 12% with a Standard

Multiple Choice

The expected return on the market is 12% with a standard deviation of 20%.The risk-free rate is 4.5%.What is the Sharpe ratio of a portfolio with an expected return of 10.5% and a standard deviation of 12%?

A) 0.38
B) 0.50
C) 0.70
D) 0.88