CFA Latest CFA Level 1 Discussions CFA Level 1 Question of the Week – Portfolio Management

CFA Level 1 Question of the Week – Portfolio Management

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    • Matt_AnalystPrep
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      Which of the following measures of risk-adjust returns is least likely to use beta?

      • A. Treynor measure
      • B. Jensen’s alpha
      • C. M-squared measure
    • Matt_AnalystPrep
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      The correct answer is C.

      M-squared and Sharpe ratio measures of risk-adjust returns use standard deviation or total risk. Treynor and Jensen’s alpha use beta or systematic risk.

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