Alpha equation

• The alpha of a fund is determined as follows: [ (sum of y) -((b)(sum of x)) ] / n where: n =number of observations (36 months) b = beta of the fund x = rate of return for the S&P 500 y = rate of return for the fund

 Embedded terms in definition
Rate of return
S&p 500
 Related Terms
 Accounting equation
Beta equation mutual funds
Beta equation stocks
Regression equation

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