Comparison of Risk vs. Return Metrics

What are Risk vs. Return Metrics?

Risk vs. Return Metrics are analytical tools used in finance to assess the relationship between the level of risk taken by an investment and the potential return generated from that investment.

Information ratio vs. M-squared

	Information ratio	M-squared
description	performance metric in investing that evaluates the excess return of a portfolio or investment relative to its benchmark, adjusted for the amount of risk taken to achieve that return.	also known as the Modigliani risk-adjusted performance measure, is a method for evaluating the performance of a portfolio or investment strategy. It was developed by Franco Modigliani and Merton Miller, who were awarded the Nobel Prize in Economics for their work in this area.
numerator	average excess return (above the risk-free rate)	excess return (above the risk-free rate)
denominator	standard deviation of excess return
formula
SPY range