What's Alpha and Beta?

What's Alpha and Beta?

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.

What is between alpha and beta?

Alpha Testing is a type of software testing performed to identify bugs before releasing the product to real users or to the public. ... Beta Testing is performed by real users of the software application in a real environment. Beta testing is one of the type of User Acceptance Testing.

How do you find alpha and beta?

Alpha = R – Rf – beta (Rm-Rf)

Beta represents the systematic risk of a portfolio. Rm represents the market return, per a benchmark.

Elena Rostova
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Elena Rostova

Elena Rostova holds a Master's degree in Public Health Journalism. She covers groundbreaking medical research, holistic wellness trends, mental health awareness, and nutritional science.