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  1. Nicole Seaman

    P2.T9.21.10. Time- versus dollar-weighted returns and risk-adjusted measures

    Learning outcomes: Differentiate between the time-weighted and dollar-weighted returns of a portfolio and describe their appropriate uses. Describe risk-adjusted performance measures, such as Sharpe’s measure, Treynor’s measure, Jensen’s measure (Jensen’s alpha), and the information ratio, and...
  2. chatty06

    Jensen's Alpha Formula - Please Confirm

    Hi All, Can someone confirm the correct Jensen's Alpha formula? I've seen two versions used throughout the material and I don't understand why. Maybe I'm just overlooking something. One version adds the Risk Free Rate to the Price of Risk while the other one subtracts it. Examples below...