What is a high beta stock?

A stock with a beta of 1.5 is a high beta and could return 15%. Measures an asset's performance relative to its benchmark; positive alpha indicates outperformance, negative signals underperformance. What is Alpha? As noted earlier, alpha measures the value a manager adds to a portfolio when adjusting for risk and market returns.

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?

Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the S&P 500. Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations.