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- Alpha and beta are fundamental concepts in finance that help investors measure and understand the performance and risk of investments relative to the broader market. Beta, often considered first, quantifies an asset's volatility or systematic risk compared to the market as a whole.
www.investopedia.com/articles/investing/092115/alpha-and-beta-beginners.asp
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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 · Alpha and beta are two of the key measurements used to evaluate the performance of a stock, a fund, or an investment portfolio. Alpha measures the amount that the investment has returned in...
Sep 9, 2024 · Alpha and beta are metrics that can help investors decide whether (or not) to buy an investment based on its risk and return profile. Alpha measures an...
- Jean Folger
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
Aug 21, 2023 · 'Alpha’ tells investors how a security has historically performed vs. a benchmark while ‘beta’ shows volatility over time vs. the market. Learn more about their differences and uses.
- Kent Thune
Jun 12, 2024 · Separating a single portfolio into two portfolios -- an alpha portfolio and a beta portfolio -- affords an investor greater control over the entire combination of exposure risks.
Alpha is used to evaluate whether an investment outperformed a certain benchmark. Beta, on the other hand, measures how volatile an asset is compared to the overall market.
