Answered By: Bobray Bordelon
Last Updated: Jan 09, 2024     Views: 24


In finance, Alpha is the return on an investment relative to an index. 

If the stock or portfolio returned 10% and the S&P or other benchmark index returned 5% then alpha would be 5%. 

Alpha = Realized return – (Risk free rate + Beta(Market Return – Risk Free Rater))

Related Topics

Contact Us

Chat with a Librarian

Text a Librarian

Text (609) 277-3245 to get live help on your mobile phone (available the same hours as the Chat service)

Email a Librarian

You can email your research questions to or you can request an individual appointment with a subject specialist.

Call a Librarian

Call (609) 258-5964 to speak to a reference librarian during most open hours of the Libraries.