Financial Risk Manager Part 2
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The risk-free rate of interest is 3%. Which of the following is an appropriate measure to use and the correct conclusion to reach when comparing the performances of the two managers?
A
The Modigliani-squared measure, which shows that Manager 1 outperforms Manager 2 by 2%
B
The Modigliani-squared measure, which shows that Manager 2 outperforms Manager 1 by 2%
C
Treynor's measure, which shows that Manager 1 outperforms Manager 2 by 6%
D
Treynor's measure, which shows that Manager 2 outperforms Manager 1 by 6%