View source for Jensen's alpha

[[Jensen's alpha]] is a number that measures the vertical distance of a portfolio's return above or below the Security Market Line; first suggested by Professor Michael Jensen, it became popular because of its ease of calculation.


==Definitions==
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
:[[Jensen's alpha]]. Measures the vertical distance of a portfolio's return above or below the Security Market Line; first suggested by Professor Michael Jensen, it became popular because of its ease of calculation.

==Related concepts==
*[[Financial management]]. A combination of [[enterprise effort]]s undertaken in order to procure and utilize monetary resources of the [[enterprise]].

==Related lectures==
*[[Introduction to Financial Management]]. 

[[Category: Financial Management]][[Category: Articles]]