1. Which of the following statements regarding Risk and Return and Risk Adjusted Return is/are correct?
1. When evaluating the return performance for a security, only evaluating the actual total return is insufficient.
2. The actual return does not take into consideration the riskiness of the investment.
3. Risk adjusted performance measures include the Du Pont Analysis, Sharpe ratio, and the Treynor ratio
Which numbers are true
2. Portfolio Return Year to date, Company Y had earned a 6.2 percent return. During the same time period, Company R earned 10.05 percent and Company C earned -1.45 percent. If you have a portfolio made up of 35 percent Y, 40 percent R, and 25 percent C, what is your portfolio return?
6.5525%
14.80%
17.70%
5.8275%