Consider the following statements on evaluation of portfolio performance.

Statement I. In evaluating, the comparative performance of different fund managers, the preferred method for calculating the rate of return is the dollar-weighted return.

Statement II. The Sharpe and Treynor measures can be manipulated by a mutual fund manager, but the M-squared measure cannot be manipulated by the mutual fund manager.

Statement III. A portfolio manager's ranking within a comparison universe may not provide a good measure of performance because portfolios may not be comparable if each manager follows a different style or subgroup.

Mark Which of the following are correct?

a. Statement I is correct, Statements II and III are incorrect.

b. Statement IlI is correct, Statements I and II are incorrect. O

. Statements I, Il and III are incorrect.

d. Statement II is correct, Statements I and III are incorrect.

e. Statements I, Il and Ill are correct.

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