标题: M2 - How to interpret undermanagement [打印本页] 作者: cfa10yrplan 时间: 2011-7-13 13:40 标题: M2 - How to interpret undermanagement
M2
I am struggling to figure out how to interpret M2 – If a manager obtains a return greater than m2 is he underperforming or over-performing?
Many thanks for your help
Regards,作者: Valores 时间: 2011-7-13 13:40
Better risk adjusted return than the market if m2 is higher than market作者: justin88 时间: 2011-7-13 13:40
Many thanks for the responses.
However, what would be your answer if the Q says
a) managers' return is 12%
b) M2 is 14%
Did the manager outperformed on risk adjusted basis?
Many thanks作者: skycfa 时间: 2011-7-13 13:40
ateso Wrote:
-------------------------------------------------------
> Many thanks for the responses.
>
> However, what would be your answer if the Q says
> a) managers' return is 12%
> b) M2 is 14%
>
> Did the manager outperformed on risk adjusted
> basis?
>
>
> Many thanks
M2 is the manager's risk adjusted return, your question isn't worded properly.
NO EXCUSES作者: canadiananalyst 时间: 2011-7-13 13:40
Jose, an easier way to keep M2 in your head
rf + Sharpe Ratio * market deviation
(for those who are remembering-challenged like me)
