The M-squared measure considers
A) only the return when evaluating mutual funds.
B) the risk-adjusted return when evaluating mutual funds.
C) only the total risk when evaluating mutual funds.
D) only the market risk when evaluating mutual funds.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The M-squared measure evaluates mutual funds by considering the risk-adjusted return, comparing the performance of a fund to that of a risk-free asset while adjusting for the risk level of the fund.

The M-Squared Measure Considers