Alpha rating is a measure of an investment’s risk-adjusted performance. It is used to calculate the excess return an investment has generated over and above what could be expected from a risk-free investment, such as a Treasury bill. Alpha is expressed as a percentage and is determined by subtracting the investment’s beta from its alpha. […]
What Is Alpha In Stocks
Alpha is a measure of a stock’s risk-adjusted performance. It is calculated by subtracting a stock’s beta from its alpha. A stock with a positive alpha is considered to have outperformed the market, while a stock with a negative alpha has underperformed the market. Alpha is used to measure a stock’s risk-adjusted performance because it […]
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