question 1: what is the Jenson index?

question 2: what does Jenson index mean?

full name of Jenson index: Jenson performance index method. In 1968, American economist Jenson systematically put forward a method to evaluate the performance of mutual funds according to the expected return determined by CAPM model as the benchmark return rate. The calculation formula is as follows: < P > j = RP-{RF+? P (RM-RF)}

where: J stands for excess return, which is called Jenson Performance Index for short; Rm represents the average rate of return of the market during the evaluation period; Rm-Rf means the compensation of market risk during the evaluation period. When the j value is positive, it shows that the evaluated fund has superior performance compared with the market; When the J value is negative, it shows that the performance of the evaluated fund is poor compared with the market. According to the size of J value, we can also sort the performance of different funds.