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- Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the S&P 500. Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations.
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Jul 29, 2024 · Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the S&P...
Sep 12, 2024 · Key Takeaways. Both alpha and beta are historical measures of past performances. Alpha shows how well (or badly) a stock has performed in comparison to a benchmark index....
Jun 12, 2024 · Separating a single portfolio into two portfolios -- an alpha portfolio and a beta portfolio -- affords an investor greater control over risk.
- Daniel Mcnulty
Apr 18, 2024 · Alpha and beta are vital concepts for investors looking to assess portfolio performance by adjusting for risk. They are essential to measuring fund and portfolio performance and a...
- Lee Samaha
Sep 9, 2024 · Alpha measures an investment's return relative to a benchmark, while beta measures risk. Find out how these two metrics can help you pick investments that match your...
- Jean Folger
Apr 18, 2024 · Though both greek letters, alpha and beta are quite different from each other. Alpha is a way to measure excess return, while beta is used to measure the volatility, or risk, of an...
Aug 21, 2023 · Alpha measures performance relative to an expected return. Beta measures the volatility of an investment returns relative to the market premium of benchmark index.