CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Which measure gives investors rankings that are identical to those of the Sharpe ratio?
A. Treynor ratio
B. M-squared
C. Jensen's Alpha
Explanation: This is because M-squared uses total risk but the other two measures use systematic risk.

User Contributed Comments 3

User Comment
ksnider under what section does Jensen Alpha and M-Square fall??
cwong2013 I saw this in the equities section and towards the end of the portfolio management cirriculum book. I suggest going into the actual CFA text. Good Luck!
Jdadd21 Sharpe ratio is to M-squared, as Treynor ratio is to Jensen's alpha
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