Alpha Equation

Alpha Equation
Fund alpha is calculated as:
[ (sum of y) -((b)(sum of x)) ] / n
Here:
n =number of observations (36 months)
b = fund beta
x = return rate for the S&P 500
y = return rate for the fund

Related posts:

  1. Alpha
  2. Beta Equation (Mutual Funds)
  3. Beta Equation (Stocks)
  4. Regression Equation
  5. APY- Annual Percentage Yield

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