# Tag Info

The factor models are based on the following linear regression model: $(R_t - R_f)$ = $\alpha$ + $\beta_{mkt}$*$(R_{mkt} - R_f)$ + $\sum\limits_{i=1}^n {x_{k,t}}$ + $\epsilon_t$ $\alpha$ is the regression model intercept and indicates the portfolio performance in excess to the market excess return and the other factor; It has to be strictly positive and ...