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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 how...
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...
16 maj 2024 · Beta is a statistical measure that compares the volatility of a particular stock’s price movements to the overall market. In simple terms, it indicates how much the price of a specific security...
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 · In investing, alpha and beta are complementary performance indicators that relate an asset’s growth and volatility to a suitable benchmark. Beta, alpha and beta coefficients are mathematically defined and based on publicly available information; they can’t be fudged, fabricated, or misconstrued.
There are various methods to calculate alpha, including the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT). CAPM calculates alpha by comparing the actual returns of a portfolio with the expected returns based on its beta (market risk).
12 lip 2024 · We'll explore the formula for calculating beta and provide detailed, step-by-step instructions on computing and interpreting this figure in Excel for both individual stocks and portfolios. Additionally, we'll cover the concepts of levered versus unlevered beta and discuss the drawbacks of using beta.
