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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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.
Cronbach alpha coefficient was used to assess the internal consistency of the whole questionnaire and of each subscale.
The reliability of the scale, Cronbach Alpha coefficient was calculated as 0.89.
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. The alpha coefficient, symbolically represented by ([[alpha].sub.j]) is the portion of a portfolio's excess return (over the risk-free rate) that is beyond the market risk premium required or expected from an investment based on an equilibrium asset pricing model such as the CAPM or a multi-factor model of risk and return such as the Arbitrage Pricing Theory (APT).
Each variable had a statistically significant relationship with only one OEQII subscale 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.
Internal consistency reliability of the scales was assessed by calculating Cronbach's alpha coefficient. A p-value of <0.05 was considered statistically significant.
According to Classical Test Theory, Cronbach's alpha coefficient of reliability (0.71) evaluates internal consistency of the scale.
The new experiment did not confirm Kandinsky's hypothesis in terms of distribution of results, percentages of maximum marks and Cronbach's alpha coefficient.
The psychometric properties of attitude scale revealed an alpha coefficient of .92 for the entire scale.
Reliability in terms of Cronbach's alpha coefficient as reported by the author in the manual was .82 for the feeling component, .81 for the cognitive component, .68 for the behavioural and the somatic component and .92 for the questionnaire as a whole.