We’ve had a few questions related to 3-Factor Fama-French and 1-Factor (CAPM) alpha calculations recently (maybe it is midterm season?). Here is a deeper dive into factors.

We’re here to help!

Below is a an old video (note the TurnkeyAnalyst reference) I put together that describes how to calculate alpha:


Here is the source excel file for the video tutorial:

how to calculate alpha

Our old post on the subject is at the following:


Note: Here is an epic post on the history of factor investing that might help students generate a better understanding of factor models.

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