I think you forgot to explain yourself, Craig. What's that then? If a ratio is part of the formula, it's a variation/transformation of the ratio, therefore a ratio too. Enlighten me, please.

@@anagomes4422 M-squared is expressed as a percentage return. There is no ratio in the metric. I didn't forget anything.

@@crgwfrench Sharpe ratio can be represented as a percentage return too. Still a ratio, right?

@@anagomes4422 Every integer is a rational number. You would not refer to "2" as a ratio. Your argument is a mere tautology.

@@anagomes4422 The whole purpose Leah and Franco had in mind when they developed this measure was to avoid the unitless ratio logic of Sharpe's measure, since practitioners find the interpretation confusing. M-squared solves this by expressing risk-adjusted return in terms os percentage return, which is easily understandable.