Jensen Alpha

Developed by Michael Jensen, Jensen Alpha measures the performance of a investment in relation to a benchmark. Jensen’s Alpha was initially used in the 1970’s to evaluate mutual fund managers. Positive Alphas suggest strong performance while negative Alphas reflect weak performance. See also: Alpha

Head and Shoulders

In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. A head and shoulders top (which is considered predictive of a price decline) consists of a high price, a decline to a support level, a rally to a higher price than …

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