The chart and the alpha and beta numbers suggest Warren ... Still, there are scenarios where investors might look more at a fund's beta. For example, if an investor is bullish on the market ...

Example: Suppose a stock with a beta rating of 1.2 returns 31 % over the period being considered, while the overall market returns 26%. U.S. Treasury bills return 4%. The stock's alpha value would ...

Alpha and beta are two terms that get thrown around ... between what an asset returned and what its benchmark returned. For example, if a stock fund returned 12 percent and the S&P 500 returned ...

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 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 ...

The chart below provides a good comparative example of alpha, or "excess returns." Investors can use both alpha and beta to judge a manager's performance. The figures included in Table 1 indicate ...

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 ...