Equation used to compute the alpha of a fund. It is calculated as follows: [ (sum of y) - ((b) (sum of x)) ] / n where n equals the number of observations (36 - 60 months), b = beta of the fund, x = rate of return for the S&P 500 or another benchmark index, and y = rate of return for the fund.
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The alpha equation of a fund is as follows: / n where: n =number of observations ( 36-60 months) b = beta of the fund x = rate.
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Regression usually run over 36-60 months of data: Return-Treasury bill= alpha + beta (S&P 500 - Treasury bill) + error. The alpha is the intercept. Note that the ...
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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 ...
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Definition of alpha equation: Equation used to compute the alpha of a fund. It is calculated as follows: [ (sum of y) - ((b) (sum of x)) ] / n where n equals the ...
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Financial Definition of Alpha equation and related terms: The alpha of a fund is determined as follows: [ (sum of y) -((b)(sum of x)) ] / n where: n =nu...
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