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Measure of risk-adjusted performance. Some refer to the alpha as the difference between the investment return and the benchmark return. However, this does not properly adjust for risk. More appropriately, an alpha is generated by regressing the security or mutual fund's excess return on the benchmark (for example S&P 500) excess return. The beta adjusts for the risk (the slope coefficient). The alpha is the intercept. Example: Suppose the mutual fund has a return of 25%, and the short-term interest rate is 5% (excess return is 20%). During the same time the market excess return is 9%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). The expected excess return given the risk is 2 x 9%=18%. The actual excess return is 20%. Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. The alpha depends on the benchmark used. For example, it may be the intercept in a multifactor model that includes risk factors in addition to the S&P 500. Related: Risk-adjusted return.


1. The measure of the performance of a portfolio after adjusting for risk. Alpha is calculated by comparing the volatility of the portfolio and comparing it to some benchmark. The alpha is the excess return of the portfolio over the benchmark. It is important to Markowitz portfolio theory and is used as a technical indicator.

2. The excess return that a portfolio makes over and above what the capital asset pricing model estimates.


The mathematical estimate of the return on a security when the market return as a whole is zero. Alpha is derived from a in the formula Ri = a + bRm which measures the return on a security (Ri) for a given return on the market (Rm) where b is beta. See also capital-asset pricing model, characteristic line.


Alpha measures risk-adjusted return, or the actual return an equity security provides in relation to the return you would expect based on its beta. Beta measures the security's volatility in relation to its benchmark index.

If a security's actual return is higher than its beta, the security has a positive alpha, and if the return is lower it has a negative alpha.

For example, if a stock's beta is 1.5, and its benchmark gained 2%, it would be expected to gain 3% (2% x 1.5 = 0.03, or 3%). If the stock gained 4%, it would have a positive alpha.

Alpha also refers to an analyst's estimate of a stock's potential to gain value based on the rate at which the company's earnings are growing and other fundamental indicators.

For example, if a stock is assigned an alpha of 1.15, the analyst expects a 15% price increase in a year when stock prices are generally flat. One investment strategy is to look for securities with positive alphas, which indicates they may be undervalued.

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Dashe and her associates conducted a retrospective study at their center to examine the role of ultrasound along with AFP screening for neural tube defects.
The association between elevated AFP levels and SIDS is not necessarily predictive and must be verified by further research, Fern Hauck, M.
We measured AFP by five nonradioactive automated immunoassays [IMx (Abbott, Rungis, France), Itiitnulite (DPC France, La Garenne-Colombes, France), hiitnuno-1 (Bayer Diagnostics, Puteaux, France), Elecsys (Roche Diagnostics, Meylan, France), and Kryptor (Brahms France, Sartrouville, France)] and one manual RIA [Elsa-2 (Cis-Bio International, Gif-sur Yvette, France)].
These include (1) any transaction closed before the end of the 30th day after the close of the tax year (short-term hedge rule), if (2) the taxpayer holds the AFP to which the transaction relates (i.
The AFP program is comprehensive, but the one-on-one telephone consultation makes it easier by personalizing your entire study curriculum.
10349, or the Revised AFP Modernization Act of 2012," the agency has the authority "as the corporate arm of the AFP and the Department of National Defense (DND), in the disposition and development of camps not covered by RA 7227 (the BCDA charter).
For almost a decade now, I have been speaking out about the importance and the need for a fixed term not only for the AFP chief of staff but also for the major service commanders, meaning, the Army, Air Force and the Navy.
The AFP Foundation's partnership with twofour54 tadreeb is very exciting.
AFP said that the so called meeting held by these group of individuals is unlawful and unconstitutional and therefore Salman Iqbal Butt (Ex Secretary Punjab Athletics Association), Afzal Awan (Ex President Baluchistan Athletics Association) and Shoukat Hussain Mughal (Ex Secretary Islamabad Athletics Association) have already been removed from their Associations as mentioned against each and all of them are irrelevant to Athletics in any capacity.
BBVA said it had transferred 100% of AFP Horizonte to AFP Integra SA and Profuturo AFP SA, funds of Canadaa[euro](tm)s Bank of Nova Scotia (TSE:BNS), or Scotiabank, and Colombian financial company Grupo de Inversiones Suramericana SA, or Sura, respectively.
Lieutenant Saleh Mohammed Buba, a military spokesman in Adawama, told AFP, "In the three-day operation, the town was placed under 24-hour curfew, which enabled soldiers to comb the nooks and corners.
According to a report by Dr Neetu Vashisht and Dr Jacob Puliyel carried by the journal, the incidence of non-polio AFP had gone up by 12 times over the normal rates with the introduction of Oral Polio Vaccine (OPV) ten years ago.