Calculating the Sharpe Ratio for a Fund

A portfolio manager is evaluating the performance of their actively managed fund over the past year. The fund generated a return of 12%, while the benchmark index achieved a return of 8% during the same period. The portfolio manager wants to assess not only the returns but also the level of risk associated with their portfolio performance.

To do this, they decide to calculate the Sharpe ratio. The standard deviation of the fund's returns over the period was 10%, and the risk-free rate is 2%. What is the Sharpe ratio for the fund?