A measure of excess return which is typically defined as the net risk-adjusted premium derived from an investment position or a portfolio of assets. Alpha is the amount of return left after subtracting the beta return (normal return) and the risk-adjusted return. The risk-adjusted return is specific and proportionate to the position or portfolio’s own risk profile and characteristics. If the total return is below market return, alpha will be negative, and vice versa.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Comments