5. In the class we talked about return risk ration and Sharpe ratio. I want you to conduct a literature search about another measure: M2 measure. Discuss the M2 measure of performance by answering the following questions:

What is M2 measure?

Why is M2 better than the Sharpe measure?

What measure of risk does M2 use?

How do you construct a managed portfolio, P, to use in computing the M2 measure?

What is the formula for M2?

Draw a graph that shows how M2 would be measured. Be sure to label the axes and all relevant points.