Q » Define alpha in finance.
06 Dec, 2025
A » In finance, alpha is a measure of an investment's performance relative to a benchmark index. It indicates the excess return generated by a portfolio manager or investment strategy, after adjusting for risk. A positive alpha suggests that the investment has outperformed the market, while a negative alpha indicates underperformance. It is a key metric for assessing the value added by active management.
06 Dec, 2025
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