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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
 Alpha
Beta
N
Rate of return
Return
S&p 500
S&p
X
 
 Related Terms
 Accounting equation
Alpha
Beta equation mutual funds
Beta equation stocks
Regression equation

<< Alpha Alternative investments >>

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