Questions on Jensen's Alpha

Hi all, first post. These boards are great. I have a couple of questions on Jensen’s alpha that I wanted to shoot out here.

When people in the investment industry simply say alpha, are they talking about Jensen’s alpha?

Second, the equation for J’s alpha is: a = (Rp - Rf) - B(Rm - Rf)

Intuitively, here is how Investopedia explains this: “The basic idea is that to analyze the performance of an investment manager you must look not only at the overall return of a portfolio, but also at the risk of that portfolio. For example, if there are two”

So since B measures systematic risk, why is it not included in the first term of the equation, (Rp - Rf). In other words, why would you adjust the expected market return premium by it’s risk, but not the portfolio’s expected return?

I must not be understanding this correctly.

The beta here is the portfolio beta . Essentially the left side is the excess return of the portfolio. The right side is the the excess market return times the portfolio beta to arrive at expected portfolio return. If the left side is> than the market, the portfolio has outperformed the market on a risk adjusted basis.