{
  "slug": "jensens-alpha",
  "name": "Jensen's Alpha",
  "category": "Risk-Adjusted Performance",
  "description": "Excess return above CAPM expectation. Measures manager skill after adjusting for market beta.",
  "formula": "α = R_p - [R_f + β × (R_m - R_f)]",
  "formula_latex": "\\alpha = R_p - \\big[R_f + \\beta(R_m - R_f)\\big]",
  "parameters": [
    {
      "name": "Portfolio return",
      "symbol": "R_p",
      "type": "percent",
      "default": 0.13
    },
    {
      "name": "Risk-free rate",
      "symbol": "R_f",
      "type": "percent",
      "default": 0.043
    },
    {
      "name": "Beta",
      "symbol": "β",
      "type": "number",
      "default": 0.95
    },
    {
      "name": "Market return",
      "symbol": "R_m",
      "type": "percent",
      "default": 0.1
    }
  ],
  "outputs": [
    {
      "name": "Alpha",
      "symbol": "α",
      "type": "percent",
      "description": "Annualized excess return vs CAPM expectation"
    }
  ],
  "worked_example": {
    "inputs": {
      "R_p": 0.13,
      "R_f": 0.043,
      "beta": 0.95,
      "R_m": 0.1
    },
    "expected_outputs": {
      "alpha": 0.0328
    }
  },
  "related_terms": [
    "jensens-alpha",
    "capm",
    "beta",
    "alpha"
  ]
}