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You currently have all of your money invested in the S&P 500. You are considering investing in the SmarterBeta fund, and you would like to

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You currently have all of your money invested in the S\&P 500. You are considering investing in the SmarterBeta fund, and you would like to know it by doing so you could increase the Sharpe Ratio of your portfolio. For that purpose, you run a regression of the excess returns on the fund on the excess returns on the S8P 500, You find the following outcome, where all coetficients are statistically significant: alpha =2%, beta =1.5, R2=70%. Given an excess return on the SBP of 8% and a S8P (market) volatility of 25%, by how much could you increase your portfolio's Sharpe Ratio

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