Our dataset includesPortfolio IndicatorslikeReturns of the Portfolio,Risk-Free Rate,Beta, andMarket Return. We can calculateAlphausing these parameters following theCAPMformula. Now we need to calculate theExpected Rate of Return. Type the following formula in cellC11and pressENTERto get theExpected ...
Usethe AVERAGE functioninExcelto find the average of Portfolio Returns: Similarly, calculate the average ofMarket Returns: =AVERAGE(D5:D14) Step 2 – Define a Risk-Free Rate Manually insert theRisk-Free Rate. Let’s assume a risk-free rate of1.5%. ...
Calculating and finding p-values is a complex process. Probability is one of the hardest fields to tackle, even for experienced and educated individuals. Here are some things to note when working with p-values in Excel: The data in your table is important if the p-value is 0.05 (5 percen...
This article provides two methods to sort worksheets in alphabetical or alphanumeric order: VBA code and Kutools for Excel. Choose the method that best suits your needs. The VBA code method is suitable for those familiar with scripting and offers a highly customizable solution. Meanwhile, Kutools...
In Excel, when you sort an alphanumeric string list, it defaults to sorting the alphabetic characters first. However, in certain cases, you may want to sort the strings numerically first. In this tutorial, I will show you a trick to solve this by adding a helper column.Sort...
TDIST and TTEST are two formulas in Excel used to calculate P-value. Here's a brief overview of each: TDIST: TDIST calculates the one-tailed probability of the Student's t-distribution. It is commonly used in hypothesis testing to determine whether a sample mean is significantly diffe...
1. Go to the Add-ins options. 2. Check the option for Excel Add-ins. 3. Check Analysis ToolPak. 4. Go to the Data tab. Read more here.
How to calculate distance in Excel from Latitude and Longitude. Download sample file with code base on Vincenty's formula.
How to Calculate a Confidence Interval in Excel at Once If you already have your sample mean, alpha value, and standard deviation, you can input the confidence function in Excel and calculate it directly, without having to go through all these steps. Meaning, the confidence function syntax, =...
Alpha vs. Beta Investors use both the alpha and beta ratios to calculate, compare, and predict investment returns. Both ratios use benchmark indexes such as the S&P 500 to compare against specific securities or portfolios. Alpha is the risk-adjusted measure of how a security performs in compari...