Alpha Equation Love Machine 14 years ago Alpha EquationFund alpha is calculated as: [ (sum of y) -((b)(sum of x)) ] / n Here: n =number of observations (36 months) b = fund beta x = return rate for the S&P 500 y = return rate for the fundRecommended for you:Beta Equation (Mutual Funds)AlphaBeta Equation (Stocks)Regression Equation