Performance Evaluation using Sharpe Ratio

John is a portfolio manager evaluating the performance of his investment fund over the past year. He is particularly interested in understanding how well his fund has performed relative to its risk. John calculates the fund's Sharpe Ratio, finding that it is 1.2. For context, the risk-free rate during the same period was 3%, and the fund's return was 12%. He is also comparing his portfolio's performance to a benchmark index, which had a total return of 10% with a standard deviation of returns of 12%.

Based on this information, which of the following statements about John's portfolio is TRUE?