If Treasury bills yielded 3%, a security with a Jensen measure of 2% underperformed the market.

Question

Quizplus · Accepted Answer

The Jensen measure is a measure of the excess return of a security over the market return. A positive Jensen measure indicates that the security outperformed the market, while a negative Jensen measure indicates that the security underperformed the market. In this case, the Jensen measure is -2%, which means that the security underperformed the market by 2%.

If Treasury Bills Yielded 3%, a Security with a Jensen