Where is this in the books and what is it?
Its in portfolio management. Its just Alpha, nothing special… Alpha is “Jensens Alpha” , I guess Jensen coined the phrase or something.
yea dats true…its just alfa…dats return as per d analyst - return to compensate systematic risk…
Definition of alpha? Simply returns over BM or risk adjusted returns?
What a bad@ss. I need to come up with a cool ratio: Sharpe, Jensen, Sortino, etc…It’s a pretty exclusive club.
kalo1 Wrote: ------------------------------------------------------- > Definition of alpha? Simply returns over BM or > risk adjusted returns? There are two types of Alpha. Ex-Ante and Ex-Post Alpha. Ex-Ante (before) = use CAPM to determine your required return. Expected - Required = Ex Ante Ex-Post (after) = Actual Returns - Benchmark Returns
Jensen is a genius.