Cryptocurrency Q&A Is Alpha expected return?

Is Alpha expected return?

DigitalDynasty DigitalDynasty Thu Oct 17 2024 | 6 answers 1602
I'm wondering if Alpha is expected to return. I need to know whether there's an anticipated comeback for Alpha in the NEAR future or not. Is Alpha expected return?

6 answers

Carlo Carlo Fri Oct 18 2024
Even a small positive alpha is viewed favorably as it suggests that the fund is able to consistently deliver returns that are slightly better than average.

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MysterylitRapture MysterylitRapture Fri Oct 18 2024
Alpha is a key metric used to evaluate the performance of a mutual fund, measuring the extent to which it outperforms or underperforms its benchmark based on its risk profile.

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Andrea Andrea Fri Oct 18 2024
Conversely, a negative alpha implies that the fund has underperformed its benchmark, indicating that the fund manager's investment strategies have not been as effective as they could have been.

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CryptoWizard CryptoWizard Fri Oct 18 2024
This measurement is derived by comparing the fund's actual returns to its expected returns, as determined by its beta, which reflects the fund's sensitivity to market movements.

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Filippo Filippo Fri Oct 18 2024
The degree of negativity in the alpha value can further categorize the underperformance as slightly below average or significantly worse, providing investors with a clearer understanding of the fund's performance.

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