Your inputs

Are you using weekly or monthly returns?

Current Riskfree Rate
Risk Premium
Beta
Std Error of Beta
Intercept
Past Riskfree rate (Annual)

W
4.28%
4.84%
1.48
0.31
0.49%
1.99%

This is what your output shoud look like

Rf (1- Beta)
Jensen's Alpha by period
Jensen's Alpha Annualized
67% range
95% range
Expected Return

-0.02%
0.51% (Monthly or Weekly)
30.17% (Annual)
1.79
1.17
2.10
0.86
11.44%

(M or W)
! Use today's ten -year government bond rate
! You can use either the historical premium (4.82%), t
! Enter your raw beta

! Remember that this is already in % on your Bloombe

! See attached worksheet for T.Bill rates by year

ment bond rate

cal premium (4.82%), the implied premium (3.70%) or an augmented premium for country risk.

y in % on your Bloomberg print out

T.Bill rates by year

Year T.Bill Rate

1995
1996
1997
1998
1999
2000
2001
2002
2003
2004

5.60%
5.14%
4.91%
5.16%
4.39%
5.37%
5.73%
1.80%
1.80%

2.18%