On September 12 2007, Mr. Hugh "Nat" Wolff invested $10 million with an asset management firm. On July 26 2011 Mr. Wolff added $3 million dollars to that investment. There were no other cash infusions or withdrawals. Today, March 17 2017, the total value of Mr. Wolff's investment at the asset management firm is $21 million. Do you have all the information you need to compute dollar-weighted and time-weighted returns? If you do not have all the information, what is missing?

Now consider how Mr. Wolff should evaluate the performance of the asset management firm he hired. What is the problem with just looking at the raw return obtained by the firm?

Describe in detail what additional data would you need to calculate Sharpe Ratio or CAPM Alpha from scratch? How do you tell whether Sharpe Ratio or CAPM Alpha is a relatively more appropriate performance measure?