M2 Measure
What is the M2 Measure?M2 measure is an extended and more useful version of the Sharpe ratio which gives us the risk-adjusted return of the portfolio by multiplying the Sharpe ratio with the standard deviation of any benchmark market index and adding risk-free return thereafter to it.Formula & Steps to Calculate M2 measureFor the calculation of the M2 firstly the Sharpe ratio (annual) will be calculated.