Alpha
Jensen's Alpha
Risk & PortfolioExcess return of an investment relative to its expected return based on risk (beta). Measures manager skill.
Formula
Alpha = Actual Return - [Rf + β × (Market Return - Rf)]
Why it matters
Positive alpha indicates outperformance vs benchmark. Consistent alpha is rare and valuable. Most active funds fail to generate alpha after fees.
Indian example
Related terms
Learn the concept
Mutual funds, ETFs, AIFs →From the research
A Comparative Financial Analysis of Three Listed Companies
Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.
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Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.
ValuationPaytm: Valuing a Company With No Clean Comparable
Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.