Alpha and beta are measures used by investors to classify the performance and risk of an investment security or portfolio. Beta is a measure of market risk, and alpha expresses whether the returns of ...

Jesse Emspak has 20+ years of experience as journalistic entrepreneur and 10 years of financial services reporting on Wall Street. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced ...

Daniel McNulty began writing for Investopedia in 2012. His work includes articles on financial analysis, asset allocation, and trading strategies. Dr. JeFreda R. Brown is a financial consultant, ...

Alpha and beta values compare the risks and rewards of an investment with overall market trends. To investors expecting high returns from riskier securities, alpha and beta values provide essential ...

When investing in mutual funds, especially equity funds, it’s common to hear financial advisors or fund fact sheets mention terms like “Alpha” and “Beta.” While they may sound technical or ...