American Funds Jensen Alpha

RERCX -- USA Fund  

Steady Growth

American Funds jensen-alpha technical analysis lookup allows you to check this and other technical indicators for American Funds EuroPacific Gr or any other equities. You can select from a set of available technical indicators by clicking on the link to the right. Please note, not all equities are covered by this module due to inconsistencies in global equity categorizations and data normalization technicques. Please check also Equity Screeners to view more equity screening tools
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American Funds EuroPacific Gr has current Jensen Alpha of 0.0494. 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.
Jensen Alpha 
 = 
ER[a] - RFR * (1-BETA) 
BETA * ER[b]) 
 = 
0.0494
ER[a] =   Expected return on investing in American Funds
ER[b] =   Expected return on market index or selected benchmark
BETA =   Beta coefficient between American Funds and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Jensen Alpha Comparison

American Funds EuroPacific Gr is rated below average in jensen alpha among similar funds. It is currently under evaluation in maximum drawdown among similar funds reporting about  64.19  of Maximum Drawdown per Jensen Alpha. The ratio of Maximum Drawdown to Jensen Alpha for American Funds EuroPacific Gr is roughly  64.19 
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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