What is alpha & beta in finance?

Alpha and beta are measures used by investors to classify the performance and risk of an investment security or portfolio. Beta is a measure of market risk, and alpha expresses whether the returns of an investment exceed the returns that its beta would predict. What Is Beta In Finance?

What is the difference between alpha and beta in the stock market?

Alpha investing aims to beat the benchmark, while beta investing focuses on how volatile an asset is compared to the market.

What does beta mean in finance?

Beta is a measure of market risk, and alpha expresses whether the returns of an investment exceed the returns that its beta would predict. What Is Beta In Finance? An investment's beta, or the beta coefficient, is statistical measure of the volatility of a certain investment's returns referenced against the market as a whole.