Oh shoot, everyone knows that. Here are the steps for calculating risk adjusted returns:

1. Make coffee.

2. Google for "risk adjusted returns".

3. Read copious articles in the hopes that understanding will occur.

4. Find formula that suggests you seriously need to brush up on your math skills.

http://www.cbo.gov/ftpdocs/88xx/doc8...dixB.5.2.shtml
5. Pull out "Algebra for Dummies" book and read furiously.

6. Urinate and make more coffee.

7. Try to remember if you have any friends that are accountants.

8. Realize you've been wasting time as accountants don't have friends.

9. Urinate again.

10. Wing it.

11. ???

12. Profit.