A bull representing an investment outperforming the market bear and a golden scale measuring their difference, emphasizing Jensen's Measure

Understanding Jensen’s Measure: Calculating Alpha for Investment Performance

What is Jensen’s Measure (Jensen’s Alpha)? Jensen’s Measure, also known as Jensen’s alpha, is a crucial risk-adjusted performance metric used to evaluate the effectiveness of investment strategies or fund managers. This measure helps investors determine whether an investment has generated returns that outperform the overall market given its associated risk

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