Alpha: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand and add links.) |
imported>Doug Williamson (Layout.) |
||
| Line 3: | Line 3: | ||
It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors. | It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors. | ||
Also known as the error term. | Also known as the 'error term'. | ||
Revision as of 13:25, 26 October 2016
That portion of an investment’s total return arising from specific (that is non-market) risk.
It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors.
Also known as the 'error term'.
An investment producing 'positive alpha' is one performing better than a benchmark with the same market risk.
