Definition
Evaluating the return of an investment without regard to the risk taken offers very little insight as to how a security or portfolio has really performed. Every security has a required rate of return, as specified by the capital asset pricing model (CAPM). The Jensen index, or alpha, is what helps investors determine how much a portfolio's realized return differs from the return it should have ach
In Panel Profits
In the Panel Profits market platform, A Deeper Look at Alpha applies standard portfolio management principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.