Alpha & Beta
Enter the stock return, benchmark return, and risk-free rate.
Alpha (excess return)
0%
Beta: 0.0
Stock excess return
0%
Benchmark excess return
0%
Alpha (CAPM-based)
0%
Beta
0.0
Expected return (CAPM)
0%
Interpretation
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Stock annual return (%) | 15% |
| Benchmark return (%) | 10% |
| Risk-free rate (%) | 5% |
| Stock beta (covariance-based) | 1.2 |
| Result | Value |
|---|---|
| Alpha (excess return) | +4.00% |
| Stock excess return | +10.00% |
| Benchmark excess return | +5.00% |
| Alpha (CAPM-based) | +4.00% |
| Beta | 1.20 |
| Expected return (CAPM) | +11.00% |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Alpha & Beta
- Stock annual return (%) β default 15%
- Benchmark return (%) β default 10%
- Risk-free rate (%) β default 5%
- Stock beta (covariance-based) β default 1.2
- Press Calculate to update the results instantly.