# Jensen's Performance Index Calculator

This jensen's measure calculator will help you to measures the excess returns earned by the portfolio compared to returns suggested by the CAPM model.

# Results...

## Formula to Calculate Jensen's Alpha

Jensen's Alpha is also known as the Jensen's Performance Index, is a risk-adjusted performance measure that represents the average return on a portfolio or investment. It represents by the symbol α. The Jensen's Alpha can be calculated using the following formula.

**Jensen's alpha (α) = R _{p} - (R_{f} + β(R_{m} - R_{f}) )**

Where,

R_{p} = Returns of the Portfolio

R_{f} = Risk-free rate

β = Stock's beta

R_{m} = Market return

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