Jensen's alpha measures a security's raw return against the
A) Sharpe-adjusted return
B) Market return
C) CAPM return
D) Real return
E) Treynor-adjusted return

Question

Quizplus · Accepted Answer

Jensen's alpha measures the excess return of a security or portfolio over its expected return as predicted by the Capital Asset Pricing Model (CAPM). It essentially shows how much more or less return the security has generated compared to what was expected given its beta (market risk).

Jensen's Alpha Measures a Security's Raw Return Against the