Question: 1. Now consider how Mr. Wolff should evaluate the performance of the asset management firm he hired. What is the problem with just looking at

1. 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

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