This week we introduced two major performance evaluation measures: Sharpes and Treynors. Which measure are you most likely to use for your current portfolio (the one you reported holding for your client in Portfolio Report 1)? What benchmark would you choose to compare performance of your portfolio?

The use of the Sharpes ratio has been more mainstream. Sortinos is rarely mentioned in undergrad textbooks; however it is used by practitioners. Sortinos Ratio is only penalizing for harmful volatility. In your opinion, do you think it would be appropriate to utilize this ratio? Would you use it to evaluate your current portfolio?