James, a portfolio manager, would like to form the following portfolio between Microsoft and Coca-Cola:

Expected return (%) Standard Deviation (%) Weight

Microsoft 28 42 0.4

Coca-Cola 12.5 21 0.6

The correlation between the two stocks is 0.5.

Now, suppose James can include the Treasury bills (T-bills) into his two-stock portfolio. The interest rate of the T-bills is 3.8%.

What is the Sharpe ratio of James portfolio?

For this question, please round up to the third decimal places.