Alpha Coefficient

Alpha Coefficient

In the capital asset pricing model, a measure of an investment's performance over and above the performance of investments of the same risk. It is graphically represented by the intersection of the security characteristic line and the x-axis. In a perfectly efficient market, the alpha coefficient ought to be zero (that is, all investments with the same risk should perform the same), but this rarely happens. It is also called Treynor's alpha. See also: Alpha.
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The total M-FAST internal consistency and the internal consistencies of the subscales (although they were not used in practice) were calculated by Cronbach alpha coefficient.
To calculate Cronbach's alpha coefficient, first standard deviation (SD) of scores for each subset of questions of questionnaire and standard deviation (SD) of all questions must be computed then obtain alpha coefficient of each subset of questions using below formula:
Light Foot and Oliver (1985; quoted from Rajabi, 2005) reported the Cronbach's alpha coefficient of the Beck Short-Form and retest reliability within two weeks equal to 0.
Statistical processing of the findings by a means of Software Package for Social Sciences (SPSS) included the following computations: frequencies of responses, Cronbach's Alpha coefficient, which defines the reliability, and Pearson's correlation coefficients.
He postulated that a fund manager's unique skill in forecasting market turns and selecting undervalued securities for his portfolio can be measured empirically by analyzing a portfolio manager's alpha coefficient.
Reliability analysis, such as Guttman test, Spearman Brown, Cronbach alpha coefficient and item total item correlations were applied to assess the degree of internal consistency and homogeneity between the items.
The authors reported good internal consistency with a Cronbach alpha coefficient of 0.
The new experiment did not confirm Kandinsky's hypothesis in terms of distribution of results, percentages of maximum marks and Cronbach's alpha coefficient.
This 18-item self-report scale was developed with an interdisciplinary sample of health care professionals, and tests for internal consistency produced an average Cronbach's alpha coefficient of .