What does it mean if a domestic mutual fund has a beta coefficient of 1.25, an alpha coefficient of 2.25 and an R-Square of 75? Explain each measurement and then interpret what these measurements mean for this mutual.© BrainMass Inc. brainmass.com June 4, 2020, 3:06 am ad1c9bdddf
Alpha can be defined as the excess return of the investment in reference to the return of the benchmark index. It also represents the value that a portfolio manager adds or subtracts from a portfolio's return. A positive value of alpha indicates the fund has outperformed its ...
Solution interprets the given mutual fund measures.