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Be sure to check out the hobbyist sections of our site. We're in the process of rolling out sections on photography and everyday gadgets. We don't focus on the cutting edge, new technologies -- we're focusing on how to use new technologies in everyday life.
Gadgets
every day uses for new and old technologies.
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The Jensen Performance Index
The Jensen Performance Index is used to determine if the Required Return, calculated using the Capital Asset Pricing Model, is realized. The Capital Asset Pricing Model is used to determine the required rate of return (in order to assume the level of risk and the Jensen Performance index is used to see if the calculation yielded the results that you thought that it would.
In order to use the Jensen Performance Index, you will need the following; the realized return (on the portfolio), the market rate of return, the tax-free rate of return and the beta of the portfolio.
For those of you who want to know the formula for the index;
Jensens = Portfolio Return - [Risk-free return + (Market Return - Risk-free Return) * Beta]
As an example, a portfolio manager achieved a return of 15.0%, his portfolio had beta measurement of 1.1 and the market achieved a return of 14.6% vs. a risk free rate of return of 7%. To calculate the Jensen Index:
alpha = .15 - [ .07 + (.146 - .07) * 1.1 ] = -.0036
a negative number indicates inferior performance as compared to the risk.
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If you're looking for information on the the FinPlan Divorce Planner (from the other FinPlan company), please continue on to http://www.divorceplanner.com.
Note - FinPlan.com does not offer any information regarding this program nor does it have any relationship with the company offering the software. This link is provided as a service only.
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FinPlan.com offers several online tools and calculators as well as some software programs from FinPlan, Inc. FinPlan started developing software in the 1980s developing 10 programs covering several personal finance topics.
Family Retirement Planner
The FinPlan Family Retirement Planner provides an excellent high-level retirement planning model to help you determine your retirement planning needs which will allow you to develop a strategy to get there.
Financial Toolkit
The FinPlan Financial Toolkit provides a variety of financial tools designed to help you answer many questions on personal finance.
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