Calculating Sharpe Ratio for a Hedge Fund

In the context of alternative investments, performance measurement is crucial for evaluating the success of an investment strategy. One commonly used metric is the Sharpe Ratio, which measures the risk-adjusted return of an investment. It is calculated by subtracting the risk-free rate from the investment's return and then dividing that result by the investment's standard deviation.

Consider a hedge fund that has generated an average annual return of 12% over the last five years, with a standard deviation of 8%. If the current risk-free rate is 3%, what is the Sharpe Ratio for this hedge fund?