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25 maj 2024 · Calculating Jensen's alpha requires 5 steps: Determine your portfolio's return. For our example, portfolio return is ($1,200,000 - $1,000,000) / $1,000,000 = 20%. Determine the risk-free rate.
Measure investment performance with Jensen's alpha Calculator - a powerful tool for assessing risk-adjusted returns. Analyze your portfolio's performance with ease!
To use this online calculator for Jensen's Alpha, enter Annual Return on Investment (Rp), Risk Free Interest Rate (Rf), Beta of the Portfolio (βp) & Annual return of the market benchmark (Rm) and hit the calculate button.
Use this calculator to determine the Jensen's Alpha for your portfolio or investment. It's a valuable tool for investors and analysts to assess risk-adjusted performance relative to the broader market.
Jensen's Alpha Calculator: Determine the abnormal return of securities using Jensen's alpha. Assess your investment portfolio. $$\alpha_{J}=r_{i}-\left [ r_{f}+\beta_{iM} \times (r_{M}-r_{f})\right ]$$
Jensen's Alpha calculator uses Jensen's Alpha or Alpha = Annual Return on Investment -( Risk free Interest Rate + Beta of the portfolio *( Annual return of the market benchmark - Risk free Interest Rate )) to calculate the Jensen's Alpha or Alpha, Jensen's Alpha is used to measure the risk-adjusted performance of a security or portfolio in ...
Jensen’s Alpha is a performance measure that represents the average return of a portfolio over the stipulated period in excess of that predicted by the Capital Asset Pricing Model (CAPM), given the portfolio’s beta and the average market return. This measure is also sometimes referred to as Alpha.
