The performance metric that measures how much a portfolio "beat the market" is:
A) the Treynor ratio.
B) the raw return.
C) the Jensen-Treynor alpha.
D) the Jensen's alpha.
E) the Sharpe ratio.

Question

Quizplus · Accepted Answer

Jensen's alpha measures the excess return of a portfolio over its expected return, adjusted for its level of risk. It is a common performance metric used to evaluate the success of investment strategies and is often used to determine if a portfolio has "beat the market."

The Performance Metric That Measures How Much a Portfolio "Beat