Evaluating Sharpe Ratio in Portfolio Management

Mark is a financial analyst managing a client portfolio with a focus on achieving superior risk-adjusted returns. He has been analyzing the performance of this portfolio over the last year. At the end of the year, the portfolio generated a return of 12%, while the risk-free rate was 3%. The standard deviation of the portfolio’s returns was 8%. Mark is considering using Sharpe ratio as a metric to assess the risk-adjusted performance of his portfolio.

Which of the following statements regarding the use of the Sharpe ratio in evaluating Mark's portfolio is most accurate?