Share
Explore BrainMass

Calculating Alpha

I need to figure out how to calculate alpha. All the other calculations are included on the attached. Please show me how to calculate.

MARKET
Apr-91 13.46% AVERAGE 16.39%
Apr-92 10.55% STD. DEV. 10.91%
Apr-93 6.08% VARIANCE 1.19%
Apr-94 2.44% CO-VAR. 1.07%
Apr-95 14.15%
Apr-96 27.09%
Apr-97 22.50%
Apr-98 38.74%
Apr-99 20.10%
Apr-00 8.78%

FAST TRACK
Date
Apr-91 5.49% AVERAGE 12.73%
Apr-92 15.01% STD. DEV. 11.20%
Apr-93 7.85% VARIANCE 0.0126
Apr-94 2.65% CO-VAR. 0.97%
Apr-95 9.34% BETA 0.9032
Apr-96 26.70% SHARPE RATIO 0.6822
Apr-97 20.21% ALPHA
Apr-98 31.98%
Apr-99 13.07%
Apr-00 -4.97%

WALLFLOWER
Date
Apr-91 9.20% AVERAGE 18.59%
Apr-92 20.82% STD. DEV. 12.76%
Apr-93 2.54% VARIANCE 1.63%
Apr-94 7.91% CO-VAR. 1.07%
Apr-95 21.87% BETA 0.9980
Apr-96 33.88% SHARPE RATIO 1.06
Apr-97 30.86% ALPHA
Apr-98 34.31%
Apr-99 24.04%
Apr-00 0.49%

MEGA
Date
Apr-91 10.61% AVERAGE 11.61%
Apr-92 7.70% STD. DEV. 11.57%
Apr-93 18.60% VARIANCE 1.34%
Apr-94 -9.50% CO-VAR 0.86%
Apr-95 4.75% BETA 0.8044
Apr-96 13.22% SHARPE RATIO 0.5637
Apr-97 10.19% ALPHA
Apr-98 36.66%
Apr-99 14.72%
Apr-00 9.19%

EINSTEIN
Date
Apr-91 10.36% AVERAGE 19.13%
Apr-92 9.02% STD. DEV. 15.43%
Apr-93 4.77% VARIANCE 2.38%
Apr-94 0.71% CO-VAR. 1.47%
Apr-95 15.10% BETA 1.3763
Apr-96 38.49% SHARPE RATIO 0.9101
Apr-97 27.76% ALPHA
Apr-98 49.76%
Apr-99 19.97%
Apr-00 15.40%

SOUNDSLEEP S&P
Date
Apr-91 12.96% AVERAGE 15.89%
Apr-92 10.05% STD. DEV. 10.91%
Apr-93 5.58% VARIANCE 1.19%
Apr-94 1.94% CO-VAR. 1.07%
Apr-95 13.65% BETA 1.0000
Apr-96 26.59% SHARPE RATIO 0.9897
Apr-97 22.00% ALPHA
Apr-98 38.24%
Apr-99 19.60%
Apr-00 8.28%

Attachments

Solution Preview

Alpha is a measure of a mutual fund's risk relative to the market. The formula ...

Solution Summary

The solution explains how to calculate the alpha of a fund

$2.19