Business / Finance / Alpha: Measure of risk-adjusted performance. An alpha is usually generated by regressing the security or mutual fund's excess return on the S&P 500 excess return. The beta adjusts for the risk (the slope coefficient). The alpha is the intercept. Example: Suppose the mutual fund has a return of 25%, and the short-term interest rate is 5% (excess return is 20%). During the same time the market excess return is 9%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). The expected excess return given the risk is 2 x 9%=18%. The actual excess return is 20%. Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. Related: Risk-adjusted return.
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Science / Chemistry / Alpha Particle: (42He) A particle that is commonly ejected from radioactive nuclei, consisting of two protons and two neutrons. Alpha particles are helium nuclei. Alpha particles have a mass of 6.644 655 98 × 10-27 MORE
Science / Chemistry / Alpha Ray: (alpha-ray) alpha radiation A stream of alpha particles. Alpha rays rapidly dissipate their energy as they pass through materials, and are far less penetrating than beta particles and gamma rays. MORE