How to calculate the alpha (α) of a stock
In this video, you'll learn how to easily calculate the alpha of a stock using basic finance principles. Using Fuji TV as an example, we break down the necessary variables like the expected return, the risk-free rate, the market return, and the company's beta. By walking you through a straightforward formula, this video shows how to quickly identify the inputs and perform simple arithmetic to determine the alpha. It's perfect for anyone preparing for finance exams or practicing for the CFA Level 1. No complicated math required—just follow the steps and you'll be set!
Previous
How to calculate the required rate of return of a stock
Next