Examlex
Predetermined employee performance reviews are important because:
Jensen Measure
A risk-adjusted performance measure that calculates the average return on a portfolio or fund over and above that predicted by the Capital Asset Pricing Model (CAPM), given the portfolio's or fund's risk.
Market Portfolio
A theoretical bundle of investments that includes every asset in the market, weighted by market capitalization; often used as a benchmark in the capital asset pricing model (CAPM).
Risk-Free Return
The return on an investment with no loss of principal, often associated with government bonds.
Geometric Average Return
The average rate of return on an investment per year, compounded annually, representing the compounded growth rate over time.
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