Two terms often tossed around within the investing community are “alpha ... and a beta less than 1.0 suggests the stock is less volatile than the benchmark. For example, a U.S. stock with ...

Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Alpha is often used in conjunction with beta (the Greek ...

Alpha is expressed in numeric terms: The higher the alpha number is, the better. For example, a fund with an ... the risk-free rate of return is 5%, its beta is 1.1, and the benchmark index ...

Alpha and beta are crucial metrics for mutual fund investors, indicating performance and risk relative to a benchmark.

Alpha and beta are two statistical measurements used in modern portfolio theory (MPT) to help investors determine the risk-return profile of an investment. Both are measures of past performance ...

Beta is one of the classic ... starting with a simple example of a call option and then graduating to an options portfolio: Chart #1 is the classic shape of a call with time still left to maturity ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...