Which is true about the M-square measure? It is a measure of portfolio excess return divided by its standard deviation. It is a ratio of alpha divided by the standard deviation of the diversifiable risk. It is used to measure the portfolio excess return, adjusted for the portfolio delta. It is a measure of portfolio excess return divided by its beta. It is the difference between the rate of return of a portfolio with the right amount of leverage to match the standard deviation of a passive index and the rate of return of that passive index.

Which is true about the M-square measure? It is a measure of portfolio excess return divided by its standard deviation. It is a ratio of alpha divided by the standard deviation of the diversifiable risk. It is used to measure the portfolio excess return, adjusted for the portfolio delta. It is a measure of portfolio excess return divided by its beta. It is the difference between the rate of return of a portfolio with the right amount of leverage to match the standard deviation of a passive index and the rate of return of that passive index.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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