Missing Parenthesis?

Quant Trading Strategies & Ideas
1

Course Name: Quantitative Portfolio Management, Section No: 9, Unit No: 4, Unit type: Video



In the 2:23 minute of the video when Jensens Alpha is shown the formula is shown as

alpha = Ri - Rf + beta * (Rm - Rf)


But shouldn't the formula be:

alpha = Ri - (Rf + beta * (Rm - Rf))

2

Yes, you are right.



The formula should be: alpha = Ri - (Rf + beta * (Rm - Rf))



We will make the necessary changes as soon as possible. 



Thanks!