Using Jensen’s Alpha to Separate Active and Passive Appreciation

Business Valuation UpdateVol. 24 No. 6
June 2018
Mark G. Filler, CPA/ABV, AM
valuation method
divorce valuation, passive appreciation, marital asset, marital property, statistics

Summary

The author presents an alternate approach (Jensen’s alpha) to segregating passive from active increases in the value of a marital asset. An example is presented of an automobile dealer.