Which metric measures performance relative to a benchmark after adjusting for risk?

Which metric measures performance relative to a benchmark after adjusting for risk?

• A. Beta measures performance relative to a benchmark after adjusting for risk.
• B. Alpha measures performance relative to a benchmark after adjusting for risk.
• C. Sharpe ratio measures performance relative to a benchmark after adjusting for risk.
• D. R-squared measures performance relative to a benchmark after adjusting for risk.

Answer: (B)