## Modigliani-Modigliani Measure Solution

STEP 0: Pre-Calculation Summary
Formula Used
Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio
M2 = Rap-Rmkt
This formula uses 3 Variables
Variables Used
Modigliani-Modigliani measure - Modigliani-Modigliani measure, also known as the M2 measure shows the return on an investment adjusted for risk in comparison to a benchmark.
Return on Adjusted Portfolio - Return on Adjusted Portfolio is adjusted to show the total risk as compared to the overall market.
Return on Market Portfolio - Return on Market Portfolio represents the excess return of the market portfolio over the risk-free rate.
STEP 1: Convert Input(s) to Base Unit
Return on Adjusted Portfolio: 25 --> No Conversion Required
Return on Market Portfolio: 4.9 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
M2 = Rap-Rmkt --> 25-4.9
Evaluating ... ...
M2 = 20.1
STEP 3: Convert Result to Output's Unit
20.1 --> No Conversion Required
20.1 <-- Modigliani-Modigliani measure
(Calculation completed in 00.004 seconds)
You are here -
Home »

## Credits

Created by Keerthika Bathula
Keerthika Bathula has created this Calculator and 100+ more calculators!
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has verified this Calculator and 200+ more calculators!

## <Risk Management Calculators

Sortino Ratio
​ Go Sortino Ratio = (Expected Portfolio Return-Risk Free Rate)/Standard Deviation of Downside
Maximum Drawdown
​ Go Maximum Drawdown = ((Trough Value-Peak Value)/Peak Value)*100
Modigliani-Modigliani Measure
​ Go Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio
Upside/Downside Ratio
​ Go Upside/Downside Ratio = Advancing Issues/Declining Issues

## Modigliani-Modigliani Measure Formula

Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio
M2 = Rap-Rmkt

## What is Modigliani-Modigliani Measure?

The Modigliani-Modigliani measure, also known as the M2 measure, is used to derive the risk-adjusted return of an investment. It shows the return on an investment adjusted for risk in comparison to a benchmark. It is shown as units of percentage return.

## 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 M2 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 (Rap) & Return on Market Portfolio (Rmkt) 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.

### FAQ

What is 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 and is represented as M2 = Rap-Rmkt or Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio. Return on Adjusted Portfolio is adjusted to show the total risk as compared to the overall market & Return on Market Portfolio represents the excess return of the market portfolio over the risk-free rate.
How to calculate 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 is calculated using Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio. To calculate Modigliani-Modigliani Measure, you need Return on Adjusted Portfolio (Rap) & Return on Market Portfolio (Rmkt). With our tool, you need to enter the respective value for Return on Adjusted Portfolio & Return on Market Portfolio and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know