In this note, several measures to assess the operation of a mutual fund are discussed, including Modigliani’s Measure, Treynor Ratio, Jensen’s Measure, and Sharpe Ratio.
It's well known by assuming higher risk that investors can raise expected returns and hence, performance measures must incorporate the notion of danger.
Learning Objective: This note is useful in teaching common methods of quantifying a mutual fund performance.
Publication Date: 11/23/2011
This is just an excerpt. This case is about Finance