Alpha measures a manager's skill in adding value to a portfolio beyond market gains. Beta assesses how a stock or fund's volatility compares to the market average. High alpha and low beta indicate ...

Together, these statistical measurements help investors evaluate the performance of a stock, fund, or investment portfolio. Here's a closer look at alpha and beta—and how you can use these ...

U.S. Treasury Rates = 4% Market Benchmark Return = 11% Beta of ABC stock = 1.4 Alpha is a performance metric used to evaluate the returns of an investment security or a portfolio after adjusting ...

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 ...

Stock "beta" is a statistical measure that compares the volatility of returns on a specific stock to those of the market as a whole. It is an important indicator of the risk and opportunity of an ...

Alpha measures the return ... analysts use beta, which measures an asset’s volatility and can be used to gauge risk. If a stock has a beta of 1.2, it might be considered 20 percent riskier ...

Alpha and beta are two statistical measurements used ... Alpha is a measure used in investing to determine whether an asset (such as a stock or mutual fund) outperformed a comparable benchmark ...

From the foundational arithmetic mean to the nuanced interpretations of stock beta and alpha, statistical tools ... will closely resemble a bell curve pattern. For instance, if you were to collect ...

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

and would have a beta of 1. Stocks having more risks than the market would have a beta higher than 1, and those having less risk would have a beta lower than 1. Alpha, on the other hand ...