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  2. Aug 4, 2021 · 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...

  3. Apr 10, 2024 · Key Takeaways. Both alpha and beta are historical measures of past performances. Alpha shows how well (or badly) a stock has performed in comparison to a benchmark index. Beta indicates how...

  4. 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...

    • Lee Samaha
  5. Apr 18, 2024 · Alpha is a way to measure excess return, while beta is used to measure the volatility, or risk, of an asset. Beta might also be referred to as the return you can earn by passively...

  6. Aug 21, 2023 · What is Alpha In Finance? Alpha is a performance metric used to evaluate the returns of an investment security or a portfolio after adjusting for...

    • Kent Thune
  7. Feb 23, 2024 · What Are Alpha and Beta in Finance? Alpha measures the excess return above a benchmark for an investment, while beta is the measure of volatility, also known as risk.

  8. May 3, 2024 · Key Takeaways. Beta quantifies the influence of the overall market on a stocks price, aiding in the assessment of investment risk by comparing stock returns to market returns through a slope calculation. Beta holds significant importance in the Capital Asset Pricing Model (CAPM) for estimating expected asset returns.

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