Answer:
B. the risk-adjusted return when evaluating mutual funds.
Explanation:
M-squared stand for Modigliani-square measure, which evaluate the risk adjusted return by some investment portfolio like mutual fund. It measure the portfolio´s return in relative to the benchmark set up in the industry. It help in calculating the risk adjusted return of the portfolio by multiplying the sharpe ratio with standard deviation and then adding risk free return. M-squared measure is easy to understand the difference between two or more investment portfolio.
