Jensens Alpha Calculator
Investing & MarketsCalculate Jensens Alpha to see how much a portfolio outperformed or underperformed its CAPM-predicted return.
Jensens Alpha
How much the portfolio beat (positive) or missed (negative) its CAPM-predicted return.
Actual Portfolio Return
20.00%
CAPM Expected Return
12.08%
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Creators
Odeh Ahwal0people find this calculator helpful
Views
Helpful
Saved
Embeds
Investing & Markets calculators
Frequently Asked Questions
What does a positive Jensens Alpha mean?
A positive alpha means the portfolio earned more than CAPM predicted for its level of risk, suggesting genuine outperformance rather than just taking on more market risk.
How is Jensens Alpha calculated?
Jensens Alpha = Actual Portfolio Return - CAPM Expected Return, where the CAPM Expected Return is the risk-free rate plus beta times the market risk premium.
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