Alpha Calculator

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Alpha Calculator

This Alpha Calculator will compute the value of alpha based on the Capital Asset Pricing Model. This CAPM-based approach will take the portfolio return, risk-free rate, beta, and market return, and calculate alpha from these elements:

Here is a snippet of the alpha calculator template:

Alpha Calculator

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Capital Assets Pricing Model (CAPM)

The CAPM formula is expressed as follows:

r = Rf + beta (RmRf) + Alpha


Alpha= R – Rf – beta (Rm-Rf)


R represents the portfolio return

Rf represents the risk-free rate of return

Beta represents the systemic risk of a portfolio

Rm represents the market return

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentations, and Word document templates.

Analyst Certification FMVA® Program

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.


Financial Analyst certification curriculum


A well rounded financial analyst possesses all of the above skills!


Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answers for you to discover:


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