Jensen's Alpha is a risk-adjusted performance measure that evaluates the excess return generated by an investment compared to a benchmark, taking into account the investment's systematic risk. It indicates how much more (or less) return an investment has provided relative to what would be expected based on its beta, which measures its sensitivity to market movements. A positive Jensen's Alpha suggests that the investment has outperformed the market on a risk-adjusted basis, while a negative value indicates underperformance.
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