Alpha Coefficient

What is it? Measures the extent to which a securitys performance exceeds or falls short of the return you would expect given its level of risk (beta). An investment with a positive alpha has delivered more return than would have been predicted by its beta. A negative alpha denotes performance that is below what you would expect given its risk level.

Added By: Mia

Send To Friends!

If you'd like to send the Alpha Coefficient definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Alpha Coefficient. If you need any more information on this term, please don't hesitate to contact us.