The entire purpose of investment performance measurement is motivated by the concept of risk. If investors hold only zero risk assets their rate of return is known in advance. There would be no need to measure realized investment performance. It must therefore be true that any measurement of investment performance must be augmented by an evaluation of investment outcomes on a risk-adjusted basis. The question is how to fairly judge (and compensate) portfolio management teams (whether internal or external) for their skill in managing the financial assets.