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) = Rp - (Rf + β(Rm - Rf) )
Where,
Rp = Returns of the Portfolio
Rf = Risk-free rate
β = Stock's beta
Rm = Market return
Recommended Pages ►
Mymathtables.com
If you like Jensen's Alpha Calculator, please consider adding a link to this tool by copy/paste the following code: