Jensen Alpha Calculator
Result
Jensen Alpha Calculator — free online calculator.
Formula
- Jensen Alpha Calculator calculates its result from Portfolio return (%), Risk-free rate (%), Beta, Market return (%). It uses the formula Calculated with the verified ST Calculator runtime.. Change any input to recalculate the result instantly.
- The main inputs are Portfolio return, Risk-free rate, Beta, Market return. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Jensen Alpha
- Portfolio return: 12 %
- Risk-free rate: 4 %
- Beta: 1.1
- Market return: 10 %
Using Portfolio return (%) = 12, Risk-free rate (%) = 4, Beta = 1.1, Market return (%) = 10, the calculated result is Jensen alpha (%): 1.4.
Sample result: Calculating…
Frequently asked questions
What does the Jensen Alpha calculate?
Jensen Alpha Calculator — free online calculator.
Which values should I enter?
Enter Portfolio return, Risk-free rate, Beta, Market return using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Jensen alpha (%) = Portfolio return (%) − (Risk-free rate (%) + Beta × (Market return (%) − Risk-free rate (%))).
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.