This document discusses various methods for evaluating portfolio performance, including the Sharpe ratio, Treynor ratio, and Jensen performance index. The Sharpe ratio measures risk-adjusted return using standard deviation, while the Treynor ratio uses beta to measure performance relative to the overall market. The Jensen performance index calculates excess return above what is expected based on market risk to evaluate portfolio manager performance. Taken together, these metrics provide different ways to analyze both the risk and return of portfolios and their managers.