Understanding Jensen's Alpha: A Guide for Investors
public–4 min read
What is Jensen's Alpha?
In the world of finance, understanding Jensen's Alpha can be the key to unlocking insights into investment performance. But what exactly is it?
Definition of Jensen's Alpha as a Risk-Adjusted Performance Measure
Jensen's Alpha, named after the esteemed economist Michael Jensen, is a risk-adjusted performance measure that evaluates the returns of an investment portfolio against its expected return based on its level of risk. It serves as a crucial tool for assessing th