Meaning ALPHA EQUATION: 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
More terms such as Alpha equation in Dictionary A.
- Definition American Stock Exchange (AMEX):
- Examples the third highest volume of trading in the U.S. Located at 86 Trinity Place in downtown Manhattan. The bulk of trading on AMEX consists of index options (computer technology index, institutional alpha equation definition.
- Definition Appraisal Rights:
- Examples A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently alpha equation explain.
- Definition Asset Pricing Model:
- Examples A model for determining the required or expected rate of return on an asset. Related: Capital asset pricing model and arbitrage pricing theory alpha equation what is.
- Definition Accelerated Depreciation:
- Examples method that produces larger deductions for depreciation in the early years of a asset's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax purposes alpha equation meaning.
- Definition Additional Bonds Test:
- Examples A test for ensuring that bond issuers can meet the debt service requirements of issuing any new additional bonds alpha equation abbreviation.
