Continue reading ->The post Using Alpha to Measure an Investment's Performance appeared first on SmartAsset Blog. Risk is one of the most essential concepts to successful investing.

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 is a way to measure excess return, while beta is used to measure the volatility, or risk, of an asset. Beta might also be referred to as the return you can earn by passively owning the market.

The frequency of alpha brain waves can be used as a measure of an individual's vulnerability to developing and experiencing pain, researchers at the University of Birmingham in the UK and ...

The alpha measures risk premiums in terms of beta. Therefore, it is assumed that the portfolio being evaluated is well diversified. The alpha requires using a different risk-free rate for each ...

Introduces a seldom-used but simple measure of portfolio performance. Shows why it’s superior to other measures in predictive ability, comprehension, and ease of use. Discusses the comparative ...

Jensen's measure, or "Jensen's alpha," indicates the portion of an investment manager's performance that did not have to do with the market.

Alpha measures risk premiums in terms of beta (β); therefore, it is assumed that the portfolio being evaluated is well diversified. The Jensen index requires using a different risk-free rate for ...

Jensen’s alpha, also referred to as ex-post alpha, essentially measures how much extra a portfolio has earned above the return predicted by the capital asset pricing model (CAPM). This ratio was ...

Continue reading ->The post Using Alpha to Measure an Investment's Performance appeared first on SmartAsset Blog. Risk is one of the most essential concepts to successful investing.

But alpha should really be used to measure return in excess of what would be expected for a given level of risk. If the fund manager outperformed an index, it may have been because the fund ...