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

Question

Quizplus · Accepted Answer

The M-squared measure adjusts the fund by hypothetically borrowing or lending until the total portfolio matches the risk level of an index, then ranks the fund on the basis of this risk-adjusted return.

The M-Squared Measure Considers