Alpha

 In

A measure of the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates the fund’s underperformance, given the expectations established by the fund’s beta. A measure of the difference between a funds actual returns relative to a benchmark, and is often referred to as the excess return.

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