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Alpha is a measure of the performance of an investment as compared to a suitable benchmark index, such as the S&P 500. An alpha of one (the baseline value is zero) shows that the return on the investment during a specified time frame outperformed the overall market average by 1%.
1 lip 2024 · Jensen's alpha is a measure used in finance to evaluate the performance of an investment portfolio relative to a benchmark index. It calculates the excess return generated by the portfolio over...
29 lip 2024 · Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the S&P 500....
27 wrz 2023 · Alpha (α) measures how a stock's performance differs from a benchmark index. Alpha is one of five key ratios, along with Beta, Standard Deviation, R-squared, and Sharpe ratio. Alpha assesses returns exceeding benchmark values due to aggressive fund management.
23 lut 2024 · Alpha (α) is a term used in investing to describe an investment strategy’s ability to beat the market, or its “edge.” Alpha is thus also often referred to as excess return or the abnormal...
2 mar 2020 · Odds Ratio = Odds of Event A / Odds of Event B. For example, we could calculate the odds ratio between picking a red ball and a green ball. The probability of picking a red ball is 4/5 = 0.8. The odds of picking a red ball are (0.8) / 1- (0.8) = 0.8 / 0.2 = 4. The odds ratio for picking a red ball compared to a green ball is calculated as:
4 lip 2023 · Alpha is calculated by subtracting the benchmark return from the investment's excess return and adjusting for risk. This can be achieved using various performance metrics, such as Jensen's alpha or the information ratio.
