You are an analyst comparing the performance of two portfolio managers using the Sharpe Ratio measurement. Manager A shows a return of 16% with a standard deviation of 10%. Manager B shows a return of 12% with a standard deviation of 8%. If the risk free rate is 2% which manager has the better risk adjusted return?

What financial statements would you use to calculate the following ratios: Return on Equity, Profit Margin, Debt to Equity, and Receivables Turnover?

Diversification in an investment portfolio is a significant concept for creating the highest return for the least amount of risk. To create this diversification portfolio managers consider the covariance and correlation of investments. Explain how covariance and correlation help to create this diversification.