The Jensen-Treynor alpha is defined as:
A) beta/Jensen's alpha
B) Jensen's alpha/standard deviation
C) standard deviation/Jensen's alpha
D) Jensen's alpha/beta
E) beta $\times$ Jensen's alpha

Question

Quizplus · Accepted Answer

The Jensen-Treynor alpha is defined as the excess return of a portfolio over its expected return given its beta. It is calculated by dividing the portfolio's Jensen's alpha by its beta. Therefore, the correct option is D, Jensen's alpha/beta.

The Jensen-Treynor Alpha Is Defined As: A) Beta/Jensen's Alpha B) ×\times×

The Jensen-Treynor Alpha Is Defined As:
A) Beta/Jensen's Alpha
B) $\times$