# Jensen's Alpha Calculator

 Category Financial ↺ Financial Investment ↺ Investment Select an Item Actuarial Method Unearned Interest Loan Annuity Payment Bond Yield Capital Gains Yield Certificate of Deposit Compound Interest Discounted Payback Period Doubling Time Doubling Time (Continuous Compounding) Doubling Time (Simple Interest) Interest Rate Calculator Jensen's Alpha Net Present Value (NPV) for even cash flow Present Value of Stock With Constant Growth Present Value of Stock With Zero Growth Price-Earnings Ratio Profitability Index (PI) PV of Perpetuity Rate of Return Real Rate of Return Return on Investment (ROI) Risk Premium Rule of 72 Sharpe Ratio Straight Line Depreciation Total Stock Return Zero Coupon Bond Effective Yield Zero Coupon Bond Value
Selected Formula
Annual Return on Investment (Input)
Risk free Interest Rate (Input)
Beta of the portfolio (Input)
Annual return of the market benchmark (Input)
• Annual Return on Investment - Annual return on investment is the geometric average amount of money earned by an investment each year over a given time period
• Risk free Interest Rate - It is the theoretical rate of return of an investment with zero risk.
• Beta of the portfolio - Beta of the portfolio is the weighted sum of the individual asset betas.
• Annual return of the market benchmark - Annual return of the market benchmark is the geometric average amount of money earned from benchmarking each year over a given time period.

## What is Jensen's Alpha?

We need calculators on a regular basis in order to simplfy the complex process of calculating. Jensen's Alpha calculator provides for the same. We have simplified the entire process of calculating Jensen's Alpha. All you have to do is provide the input values and hit calculate. You will get the answer for Jensen's Alpha without getting into the complex process of actually calculating anything. The definitions and meanings of all variables used in the formula are also provided. If you don’t have the values of all variables and you need to calculate some, even that is possible as we provide you different variants and derived formulae as well.