Positive Jensen alpha is associated with better than average performance.

Name: Positive Jensen alpha is associated with better than average performance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Jensen's alpha measures the excess return of an investment compared to the expected return predicted by the Capital Asset Pricing Model (CAPM). A positive Jensen's alpha indicates that the investment has performed better than what would be expected given its risk level, implying better than average performance.

Positive Jensen Alpha Is Associated with Better Than Average Performance