Topical Terminology > Alpha Equation
1 Definition
Alpha Equation
For Alpha Equation we have a term and definition in Finance.
Alpha Equation (Finance) 
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 benchmark does not necessarily have to be the S&P 500. A mutual fund specializing in international investment might be benchmarked to a broader world market index, such as the MSCI World Index.
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