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Discuss the M2 Measure of Performance by Answering the Following

Question 81

Essay

Discuss the M2 measure of performance by answering the following questions.Why is M2 better than the Sharpe measure
What measure of risk does M2 use
How do you construct a managed portfolio, P, to use in computing the M2 measure
What is the formula for M2
Draw a graph that shows how M2 would be measured.Be sure to label the axes and all relevant points.

Correct Answer:

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The Sharpe measure indicates whether a p...

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