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Jensen Measure
A performance metric used to evaluate the excess return of an investment portfolio over the predicted return of a risk-adjusted model.
Market Portfolio
A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted by its total market value.
Sharpe Measure
A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.
S&P 500 Index
A stock market index in the United States composed of the market values of 500 major companies listed on either the New York Stock Exchange or NASDAQ.
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