About this episode

This episode covers the Sharpe, Treynor, and Jensen performance measures and their relevance to the Series 65 exam.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Sharpe Ratio uses standard deviation to measure return per unit of total risk, making it ideal for non-diversified portfolios. - The Treynor Ratio uses beta to measure return per unit of systematic risk, making it the correct choice for well-diversified portfolios. - Jensen's Alpha is a measure of a manager's skill, calculating the excess return a portfolio earned above its expected return based on its beta. - How the Series 65 exam tests these concepts conceptually, focusing on which measure is appropriate for a given scenario rather than complex calculations. - A simple mnemonic to remember the key risk component for each performance measure: Sharpe for Standard Deviation, Treynor for Beta, and Jensen for Genius (Alpha). For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or…

People in this episode

Host: Ran Chen

Topics covered

• performance measures
• Sharpe Ratio
• Treynor Ratio
• Jensen's Alpha
• Series 65 exam
• risk measurement

Keywords

• Sharpe Ratio
• Treynor Ratio
• Jensen's Alpha
• Series 65
• risk measurement
• portfolio management
• exam preparation

Mentioned in this episode

Organizations: Open Exam Prep

Products: Series 65

More episodes of Open Exam Prep

• [Series 65] 46, Asset Allocation Strategies · May 8, 2026 · 3 min
• [Series 65] 44, Alpha Beta and Standard Deviation · May 6, 2026 · 4 min
• [Series 65] 43, Efficient Market Hypothesis · May 5, 2026 · 4 min

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