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 template Calculator:
Enter your name and email in the form below and download the free template now!
The CAPM formula is expressed as follows:
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
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.