How to Calculate Modigliani-Modigliani Measure?
Modigliani-Modigliani Measure calculator uses Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio to calculate the Modigliani-Modigliani measure, The Modigliani-Modigliani Measure is used to characterise how well a portfolio's return rewards an investor for the amount of risk taken, relative to that of some benchmark portfolio and to the risk-free rate. Modigliani-Modigliani measure is denoted by M_{2} symbol.
How to calculate Modigliani-Modigliani Measure using this online calculator? To use this online calculator for Modigliani-Modigliani Measure, enter Return on Adjusted Portfolio (R_{ap}) & Return on Market Portfolio (R_{mkt}) and hit the calculate button. Here is how the Modigliani-Modigliani Measure calculation can be explained with given input values -> 20.1 = 25-4.9.