Free Online Calculators » Jensen's alpha Calculator

Jensen's alpha is used to determine the abnormal return of a security or portfolio of securities over the theoretical expected return.



Initial Data


Annual return on investment (ri)
 %
Risk-free interest rate (rf)
 %
Beta of the portfolio (βi)
Annual return of the market benchmark (rm)
 %

Result


Jensen's alpha:
 %


$$\alpha_{J}=r_{i}-\left [ r_{f}+\beta_{iM} \times (r_{M}-r_{f})\right ]$$