Beta is value that reflects the amount of risk of a single or combined group of securities measured against the market as a whole. A beta value of 1 suggest that the security or portfolio will move in line with the overall market. A beta of less than 1 suggets that the security will be … Read more

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