Sharpe ratio, Treynor ratio, Jensen's alpha / Fundamentals of investments / Episode 11

We discuss three popular risk-adjusted performance measures widely used in the portfolio management industry: Sharpe ratio, Treynor ratio, and Jensen's alpha. We explain these measures through practical examples and also let you test your understanding.

For the solution to Exercise 1 and the Sharpe ratio calculator, please see:
www.initialreturn.com/sharpe-ratio-calculator-form…

Exercise 2 and Treynor ratio calculator:
www.initialreturn.com/treynor-ratio-formula-calcul…

Exercise 3 and Jensen's alpha calculator:
www.initialreturn.com/jensens-alpha-formula-and-ca…

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00:00 Intro
00:23 Sharpe ratio
05:31 Treynor ratio
09:32 Jensen’s alpha
15:16 Summary

#portfoliomanagement #investmentanalysis #investing101