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

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.

CFA Level 1 Question Of The Week - Portfolio Management (6) - CFA Level 1

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This topic has 1 reply, 1 voice, and was last updated Sep-197:51 pm by Matt_AnalystPrep.

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- Matt_AnalystPrep
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  13 Sep 2019 at 7:34 am
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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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  - CFA Charterholder
  18 Sep 2019 at 7:51 pm
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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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