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Jensen's Measure of Portfolio Performance Compares the Return a Portfolio

question 95

True/False

Jensen's measure of portfolio performance compares the return a portfolio to the beta adjusted market return.


Definitions:

Investing

Channeling money or assets towards avenues with the expectation of profit or income generation.

Interest Rate

The rate, expressed as a share of the principal, that a lender charges a borrower for the borrowing of assets.

Investing

The act of allocating resources, typically money, with the expectation of generating an income or profit over time through various instruments like stocks, bonds, or real estate.

Net Investment

The total amount of money spent on capital assets, minus depreciation. It reflects the increase in a company's or nation's capital stock.

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