About this question
Medium · statistical_analysis · Quant Researcher interview question · linear_algebra, regression, numpy, statistics
Calculating asset Beta ($\beta$) and Alpha ($\alpha$) against a benchmark is a fundamental task in quantitative finance for risk assessment and portfolio construction. While high-level libraries exist, implementing the closed-form matrix solution for Ordinary Least Squares (OLS) ensures a deep understanding of the underlying linear algebra and numerical stability issues. Task Implement a function solution(x, y) that calculates the intercept ($\alpha$) and slope ($\beta$) of a simple linear regr