True or False question

1. You are evaluating the performance of your superannuation investments. Your aim is to assess the performance of the portfolio manager. The appropriate measure is the dollar-weighted return.

2. If interest rates are expected to go down, bond investors will prefer to invest in callable bonds to non-callable bonds, other things being equal.

3. According to the Markowitz portfolio optimisation model, risk-averse investors will have lower Sharpe-ratios compared to less risk-averse investors.