Consider the five different measures of risk-adjusted portfolio performance we have examined: Sharpe ratio, Treynor ratio, Jensen

Question:

Consider the five different measures of risk-adjusted performance we have examined: Sharpe ratio, Treynor ratio, Jensen alpha, information ratio, and Sortino ratio.
a. Describe how each of these measures defines the risk that investors face.
b. Describe how each of these measures adjusts a portfolio's return performance for the level of that risk.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...