Alpha measures a manager's skill in adding value to a portfolio beyond market gains. Beta assesses how a stock or fund's volatility compares to the market average. High alpha and low beta indicate ...

Alpha and beta are measures used by investors to classify ... expected return of an investment (or portfolio) using the CAPM formula, and then comparing the actual return to the expected return.

Calcuating alpha is less difficult, as long as the figures required are easily obtainable. The formula is: (actual return – risk-free return – [beta × (market return – risk-free return ...

Improving one’s portfolio by knowing how Alpha and Beta relate to investment ... index's daily percentage change alone.) The formula to calculate Beta is: Beta (β) = Covariance (Stock's Daily ...

Alpha The mathematical formula for calculating alpha is the following: Alpha = r - Rf - beta * (Rm – Rf) Where: r = the portfolio’s return Rf = the risk-free rate of return beta = the ...

Solve \(\sqrt 3 \cos x + \sin x = \sqrt 2\), for \(0 \le x \le 2\pi\). First of all we need to put \(\sqrt 3 \cos x + \sin x\) into the form \(k\cos (x - \alpha ...

It takes into account the beta and ... metric using the formula above can result in one of three possible outcomes: Jensen's measure is also commonly referred to as Jensen's alpha.