Question: Which is true about the M - square measure? It is used to measure the portfolio excess return, adjusted for the portfolio delta. It is

Which is true about the M

-

square measure?

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.

It is a ratio of alpha divided by the standard deviation of the diversifiable risk.

It is a measure of portfolio excess return divided by its standard deviation.

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