How to calculate Jensen's alpha in Excel / Analyzing stock returns / Episode 9

We show how to use Excel's regression tool to estimate the Jensen's alpha for a stock. We also explain how to interpret the statistical significance of the estimate. Finally, we offer a visual interpretation of the Jensen's alpha through a plot of the Security Market Line. Visit the page below to download the Excel template used in this tutorial: https://www.initialreturn.com/how-to-... If you'd like to learn more about the Jensen's alpha formula or need an online calculator, check out our detailed post: https://www.initialreturn.com/jensens... 0:00 Tutorial outline 0:53 Data needed to compute Jensen's alpha 3:16 Estimating Jensen's alpha through regression 5:30 Statistical significance of the Jensen's alpha estimate 7:08 Visual interpretation through the security market line Enjoying our content? Become a member for exclusive videos & posts and early access to upcoming content:    / @initialreturn   Click the link below to subscribe to our channel:    / @initialreturn   You can also follow us on X (Twitter): https://x.com/initial_return And, here are our official Facebook, Instagram, and Pinterest pages:   / initialreturn     / initialreturn     / initialreturn   And, visit our website for free courses, tutorials, and more: https://www.initialreturn.com/ #tutorial #investing #finance #portfoliomanagement