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avatar Henna 1 month ago
What is Alpha in Finance?
Curious about what is alpha in finance? Alpha in finance measures how much an investment outperforms its benchmark after adjusting for market risk. Investors often look for positive alpha when evaluating portfolio performance. How do you measure investment success?
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  • C

    In finance, alpha measures an investment's performance compared to its expected return based on market risk. A positive alpha means the investment outperformed its benchmark, while a negative alpha indicates it underperformed.

  • J

    Alpha in finance measures an investment’s performance compared to a benchmark index. A positive alpha indicates an asset has outperformed the benchmark, while negative alpha shows underperformance.

     

  • C

    An alpha in finance is a measure of an investment performance relative to an index. The result is positive if an investment outperformed the index while it was negative when the investment underperformed the index.

  • T

    In financial analysis, alpha is the performance of an investment compared to its benchmark, adjusted for the risk taken. Alpha can be either positive or negative, with positive alpha showing good returns in relation to the benchmark, and negative alpha demonstrating poor returns.

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