Microsoft Jensen Alpha

Microsoft Corporation has current Jensen Alpha of (0.0072). Jensen alpha is a measure of the returns that are attributable to the managers ability to select security and time the market. In other words it is the returns remaining after deducting what would have been attributable to beta returns (which do not require skill) and the risk free rate.
Microsoft 
Jensen Alpha 
 = 
ER[a] - RFR * (1-BETA) 
BETA * ER[b]) 
 = 
(0.0072)
ER[a] =   Expected return on investing in Microsoft
ER[b] =   Expected return on market index or selected benchmark
BETA =   Beta coefficient between Microsoft and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Jensen Alpha Comparison

Microsoft Corporation is rated below average in jensen alpha category among related companies. It is rated below average in maximum drawdown category among related companies .
Jensen alpha is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk free rate (RF), plus the market risk premium (which is given by [Beta x (Market Portfolio Return - Risk Free Rate)]. Anything remaining over and above is alpha.
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Microsoft Corporationration a technology company develops licenses and supports software products services and devices worldwide. more
NameMicrosoft Corporation
InstrumentUSA Stock
RegionNorth America
ExchangeNASDAQ
CIK Number0000789019
ISINUS5949181045
CUSIP594918104
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
CurrencyUSD - US Dollar