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Feb 23, 2024 · Fact checked by. Timothy Li. What Is Alpha? Alpha (α) is a term used in investing to describe an investment strategy’s ability to beat the market, or its “edge.” Alpha is thus also often...
Aug 4, 2021 · Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations. Alpha and beta are both measures used to compare and predict returns.
May 6, 2024 · The Jensen index, or alpha, is what helps investors determine how much a portfolio's realized return differs from the return it should have achieved. This article will provide a deeper...
Apr 10, 2024 · Alpha and beta are standard calculations that are used to evaluate an investment portfolio’s returns, along with standard deviation, R-squared, and the...
May 23, 2022 · Updated May 23, 2022. Reviewed by. JeFreda R. Brown. Separating a single portfolio into two portfolios -- an alpha portfolio and a beta portfolio -- affords an investor greater control over the...
Sep 30, 2020 · The Jensen's measure, or Jensen's alpha, is a risk-adjusted performance measure that represents the average return on a portfolio or investment, above or below that...
Apr 11, 2022 · Key Takeaways. Weighted alpha measures the performance of a security over a certain period, usually a year, with more importance given to recent activity. A positive weighted alpha shows that...
