Q » Define alpha in finance.

Steven

06 Dec, 2025

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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.

Michael

06 Dec, 2025

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A »In finance, alpha measures an investment's performance relative to the overall market. It's the excess return generated by an investment compared to the return of a benchmark index. A positive alpha indicates an investment has outperformed the market, while a negative alpha indicates underperformance.

David

06 Dec, 2025

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