forrest gump
1 Answer
Chiangmai
An alpha is the first alphabet in the Greek language.
An Alpha is what your portfolio or mutual fund manager can do to provide value for his service vs the broad market or any measurable index. Therefore, the higher the alpha, the more value your manager provides for you. An example would be: a portfolio that outperforms the market while taking less than market risk.
Beta is the movement of your portfolio vs. the movement of the index. If the S&P index is 1.0 and your beta is 1.1, then your portfolio is 10% more volatile than the market. Hence, you'd expect to outperform the market by 10% since you're taking 10% more risk.
Are you confused yet?
| 15 years ago. Rating: 0 | |
Top contributors in Languages category
Unanswered Questions
lv88 reviews
Answers: 0
Views: 8
Rating: 0
xoso66wien
Answers: 0
Views: 7
Rating: 0
Chon AKauto khi can do choi xe hoi co phai quyet dinh dung?
Answers: 0
Views: 16
Rating: 0
Chon AKauto khi can do choi xe hoi co phai quyet dinh dung?
Answers: 0
Views: 9
Rating: 0
S666
Answers: 0
Views: 16
Rating: 0
H19
Answers: 0
Views: 12
Rating: 0
fun79bioo1
Answers: 0
Views: 12
Rating: 0
H19
> More questions...
Answers: 0
Views: 12
Rating: 0