If Rp = fund return, Rf = the risk- free return, Rm = the market return, and Bp = the beta of the fund, then the fund's alpha statistic is defined as Rm - Bp(Rf - Rp).

Name: If Rp = fund return, Rf = the risk- free return, Rm = the market return, and Bp = the beta of the fund, then the fund's alpha statistic is defined as Rm - Bp(Rf - Rp).
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The fund's alpha statistic is defined as Rp - [Rf + Bp(Rm - Rf)], which measures the fund's performance relative to its expected return based on its beta.

If Rp = Fund Return, Rf = the Risk- Free