Title: Boost College Savings: See How Sarah & David Could Gain $75,000 with Alpha Analysis Tagline: Can This High-Growth Stock Cover College? $75,000 Boost with Alpha Analysis Problem: Sarah and David, both 42, earn a combined $450,000. They have three children, ages 10, 12, and 14. They are diligently saving for college, currently allocating $5,000/month to a diversified portfolio. They've been considering adding a high-growth tech stock, "Innovate," to their portfolio, but are concerned about the added risk. They want to know if Innovate's potential returns justify the risk, and how it would impact their long-term college savings goals. Their benchmark is the S&P 500, which they believe reflects their overall investment risk tolerance. They want to know if Innovate truly offers superior risk-adjusted performance compared to simply investing in the S&P 500. They are also aware of the potential for increased taxes from a high-growth stock and need to consider this factor. Solution: By using the Alpha Calculator, Sarah and David can quantify Innovate's risk-adjusted performance (Jensen's Alpha) relative to the S&P 500 benchmark. They can then compare Innovate's alpha to that of their current portfolio and determine if the added risk is likely to result in superior, risk-adjusted returns. If Innovate demonstrates a significantly positive alpha, they can feel confident in allocating a portion of their college savings to this higher-growth opportunity. Furthermore, using the Tax Equivalent Yield Calculator can help them understand the true after-tax return and factor that into their decision. ROI: By identifying Innovate's Jensen's Alpha at 0.06 (6%) compared to a benchmark of the S&P 500, and then understanding the after-tax return using the Tax Equivalent Yield Calculator, Sarah and David can reasonably expect an additional $75,000 in college savings over the next 10 years due to improved risk-adjusted returns from a strategic allocation to "Innovate." This projection accounts for the higher potential tax implications and still results in a significant net gain. Description: Uncover hidden alpha and optimize your portfolio's risk-adjusted returns. Make smarter college savings decisions. Category: Client Service