What is the impact of Jensen Alpha on cryptocurrency investments?

1 answers

• Jeffrey RufusJul 11, 2025 · 4 months ago
  Jensen Alpha is an important metric for evaluating the performance of cryptocurrency investments. It measures the excess return of a cryptocurrency investment over the risk-free rate and the market return. A positive Jensen Alpha indicates that the cryptocurrency investment has outperformed the market, while a negative Jensen Alpha suggests underperformance. Investors can use Jensen Alpha to assess the skill of fund managers and determine whether a cryptocurrency investment is worth considering. However, it's important to note that Jensen Alpha should not be the sole factor in making investment decisions. It should be used in conjunction with other fundamental and technical analysis tools to get a comprehensive view of the investment potential.
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