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Aragorn has a portfolio with a 15% total return. The beta and the standard deviation of the portfolio is 1.5 and 10% respectively. The standard

Aragorn has a portfolio with a 15% total return. The beta and the standard deviation of the portfolio is 1.5 and 10% respectively. The standard deviation of the market is also 10%. Currently, the return on Treasury Bill is 5% and the return on S&P 500 Index is 13%. 



What is the value of Sharpe's measure for Aragorn's portfolio? 



What does your answer indicate when compared to the market?

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