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Glossary of Financial & Economic Terms |
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Glossary of Financial & Economic Terms |
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Alpha (investment) T
Alpha is a risk-adjusted measure of the so-called "excess return" on an investment. It is a common measure of assessing active manager's performance. The difference between the fair and actually expected rates of return on a stock is called the stock's alpha.
source: http://en.wikipedia.org/wiki/Alpha_%28Investment%29
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