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Oct 7, 2025 · Alpha (α) is an investing term that measures an investment strategy's ability to outperform the market, often called its "edge." It represents the excess or abnormal return of …

Feb 25, 2025 · Alpha measures if a manager's skill, not luck, adds investment value beyond market returns. Understanding alpha helps investors avoid paying for market risk (beta) that …

Alpha (α) measures how a stock's performance differs from a benchmark index. Alpha is one of five key ratios, along with Beta, Standard Deviation, R-squared, and Sharpe ratio. Alpha …

Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index. An alpha of 1% means the investment's return on …

Jul 9, 2025 · Alpha tells us how well an asset or portfolio is performing when compared to a stock market index, whereas beta tells us how correlated an asset is to the stock market and how …

Dec 12, 2024 · An alpha stock is a security that delivers returns above the benchmark or market index it’s compared against. This is important because it’s a key indicator of a portfolio …