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Retain the observation identity
The original five-period record uses benchmark returns −2/−1/0/1/2 percent and asset returns −3/−0.5/1/2.5/6 percent. These are hypothetical observations in matching order, not a historical market feed.
Inspect the original pairs
| Period | Benchmark (%) | Asset (%) |
|---|---|---|
| 1 | -2 | -3 |
| 2 | -1 | -0.5 |
| 3 | 0 | 1 |
| 4 | 1 | 2.5 |
| 5 | 2 | 6 |
Check the same return definition
Confirm matching start/end dates, frequency, currency, income and cost treatment. Raw and excess returns are different bases. Excluding a missing observation must preserve both members of the corresponding pair, not shift one series against the other.
Keep the estimator scope
The tool fits asset return on the chosen benchmark with equal observation weights and an intercept. The benchmark is a supplied proxy; it is not automatically the market portfolio. No causal relationship or future return follows from a correct data pairing.