Alpha = R Rf beta (Rm-Rf) Rf represents the risk-free rate of return. Beta represents the systematic risk of a portfolio. Rm represents the market return, per a benchmark.
How do you find the alpha of a portfolio?
- R represents the portfolio return.
- Rf represents the risk-free rate of return.
- Beta represents the systematic risk of a portfolio.
- Rm represents the market return, per a benchmark.
How do you find the beta and alpha of a stock?
- y is the performance of the stock or fund.
- a is alpha, which is the excess return of the stock or fund.
- b is beta, which is volatility relative to the benchmark.
- x is the performance of the benchmark, which is often the S&P 500 index.
Is Seeking Alpha legitimate?
Seeking Alpha is not a credible source. This is because the opinions are not from financial experts, but rather individual contributors expressing their own opinion. The market predictions they make are rarely close to accurate.
Can you trade on Seeking Alpha?
For this reason, we've established the following policies governing our employees' behavior and personal investing: Rule #1: No short-term trading: You must hold positions in stocks, options, bonds, and ETFs for a minimum of 90 days.
Is Seeking Alpha worth the money?
Yes, Seeking Alpha Premium is worth it if you hold several individual stocks and want to save time monitoring your portfolio. You might also choose Premium if you make several trades per month and rely on the fundamental analysis from other investors.15 Jan 2022