To calculate Modigliani risk-adjusted performance, the portfolio's returns are adjusted based on its risk relative to a benchmark, often chosen to be the market as a whole.
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TommasoWed Oct 16 2024
The benchmark serves as a reference point, allowing investors to compare the risk-adjusted performance of their portfolio against a broader market index.
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AzureWaveWed Oct 16 2024
By incorporating risk into the equation, Modigliani risk-adjusted performance provides a more comprehensive view of portfolio performance, helping investors make informed decisions about asset allocation and risk management.
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ElenaWed Oct 16 2024
Modigliani risk-adjusted performance, also known by various acronyms such as M2 or RAP, serves as a crucial metric for evaluating the profitability of an investment portfolio while accounting for risk.
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GalaxyWhisperWed Oct 16 2024
This measure goes beyond simply looking at the raw returns generated by a portfolio and instead considers how these returns are impacted by the level of risk associated with the investments.