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Alpha
Definition
Alpha is the excess risk-adjusted return earned by within an active investment approach.
Using the term Alpha :
The hedge fund tried to deliver alpha to his investors by exceeding the return implied by beta (the appropriate return of the market given a certain level of risk.)
Pay Special Attention To :
Alpha seekers may sometimes take on undue risk to try to realize additional gains. Try to monitor your investment manager's activities as best you can to ensure you are comfortable with his risk management activities.
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Related terms
Beta , Performance Fee
'Alpha' appears in these other terms:
Alpha and Beta Separation Alpha Research
'Alpha' appears in the definitions of these other terms:
Alpha and Beta Separation Alpha Research
