Ads
related to: beta vs alpha investing options
Search results
Results From The WOW.Com Content Network
Alpha is a way to measure excess return, while beta is used to measure the volatility, or risk, of an asset. Beta might also be referred to as the return you can earn by passively owning the market.
Alpha investing aims to beat the benchmark, while beta investing focuses on how volatile an asset is compared to the market. Alpha vs. beta: Understanding the differences and they work in ...
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 investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market.
Viewed from the implementation side, investment techniques and strategies are the means to either capture risk premia (beta) or to obtain excess returns (alpha). Whereas returns from beta are a result of exposing the portfolio to systematic risks (traditional or alternative), alpha is an exceptional return that an investor or portfolio manager ...
In finance, the beta (β or market beta or beta coefficient) is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the stock market as a whole. Beta can be used to indicate the contribution of an individual asset to the market risk of a portfolio when it is
This options vs. stocks comparison will help you determine which investment type will best help you reach your financial goals. Stocks A stock is a fractional share of ownership in a company.