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Alpha


Alpha is the name for the first letter in the Greek alphabet: alpha.

In finance, alpha is a financial measure giving the difference between a fund's actual return and its expected level of performance, given its level of risk (as measured by beta). A positive alpha indicates that a fund has performed better than expected based on its beta, whereas a negative alpha indicates poorer performance.


See also

Alpha Function, Alpha-Test, Alpha Value, Beta, Sharpe Ratio

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Cite this as:

Weisstein, Eric W. "Alpha." From MathWorld--A Wolfram Web Resource. https://mathworld.wolfram.com/Alpha.html

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