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12 wrz 2024 · Beta measures the relative volatility of an investment. It is an indication of its relative risk. Key Takeaways. Both alpha and beta are historical measures of past performances. Alpha shows...
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.
18 kwi 2024 · Key Points. Understanding the alpha and beta concepts is important for maximizing portfolio performance. Higher alpha is always preferred to lower alpha, but there are scenarios where...
21 sie 2023 · 'Alpha’ tells investors how a security has historically performed vs. a benchmark while ‘beta’ shows volatility over time vs. the market. Learn more about their differences and uses.
17 paź 2023 · Explore the difference between alpha and beta - the dynamic duo that defines your portfolio's performance. When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
Now, calculate monthly holding period returns using the prices and dividends. For example, the return for month 2 will be calculated as: r_2 = ( p_2 - p_1 + d_2 ) / p_1
18 kwi 2024 · To figure the expected return for an investment’s level of risk, analysts use beta, which measures an asset’s volatility and can be used to gauge risk. If a stock has a beta of 1.2, it might ...
