The portfolio performance evaluation measure, known as M-squared, uses ____ as the relevant measure of risk and is based on the ex-post capital market line.
A) standard deviation
B) arithmetic mean
C) variation
D) beta

Question

Quizplus · Accepted Answer

M-squared uses standard deviation as the relevant measure of risk and is based on the ex-post capital market line, comparing the performance of a portfolio to that of a benchmark, adjusting for risk.

The Portfolio Performance Evaluation Measure, Known as M-Squared, Uses ____