The author has chosen to take-on myths and mysteries of M-squared. Starting from a position of doubt in the essential theory of leveraging a portfolio up or down to match its risk to the benchmark, this author, through thought, reflection and research has completely reversed his original attitude. This article describes the method, shows how to calculate it, and concludes that the Modiglianis, both grandfather and granddaughter, have led us to the best way to view risk.

M-Squared: A Double-take on Three Approaches to a Primary Risk Measure.