The Sharpe ratio is a measure used to evaluate the risk-adjusted performance of an investment. It is calculated by taking the difference between the expected return of the investment and the risk-free rate of return, and then dividing that difference by the standard deviation (volatility) of the investment's returns. The formula for the Sharpe ratio is:

$\text{Sharpe Ratio} = \frac{\text{Expected Return of Portfolio} - \text{Risk-Free Rate}}{\text{Volatility of Returns of Portfolio}}$

Given the information from the file content:

• Expected return of the portfolio: 8.7%
• Risk-free rate of return: 2.0%
• Volatility (standard deviation) of returns of the portfolio: 12.0%

The calculation for the Sharpe ratio of the portfolio would be:

$\text{Sharpe Ratio} = \frac{8.7\% - 2.0\%}{12.0\%} = \frac{6.7\%}{12.0\%} = 0.5583$

This calculation results in a Sharpe ratio of approximately 0.558, which corresponds to option D in the provided choices. Hence, the correct answer is D.