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 and beta are metrics that can help investors decide ... while a negative alpha shows it underperformed. For example, an investment with a +2 alpha exceeded the benchmark index's performance ...

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

Alpha is sometimes casually referred to as a measure of outperformance, meaning the alpha is the difference between what an asset returned and what its benchmark returned. For example, if a stock ...

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 ...