Work out jensen alpha instantly with clear inputs, formula shown and shareable results.
Jensen's alpha is the return earned above what CAPM required for the risk taken. A high raw return achieved with a high beta may produce no alpha at all, which is why alpha rather than raw return measures skill.
Jensen's alpha
α = R_p - [r_f + β(R_m - r_f)]
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Not from one period. Alpha needs to persist across time and survive fee and factor adjustments before it means anything.
Alpha absorbs the error, so a wrong beta produces a spurious alpha. Always check the regression quality.