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.

M-squared vs. Alpha

	M-squared	Alpha
description	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.	measure of a portfolio’s performance that is relative to a benchmark index. It is used to evaluate the performance of an investment manager, and it represents the return on an investment portfolio over the return that a benchmark index has achieved.
numerator	excess return (above the risk-free rate)	excess return (above the risk-free rate)
denominator
formula
SPY range