Alpha and beta are two statistical measurements used in modern portfolio theory (MPT) to help investors determine the risk-return profile of an investment. Both are measures of past performance, and ...

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, ...

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 ...

Alpha beta separation? Beta-based asset allocation is supposedly the main driver of returns. Many papers claim that it is almost all that matters. They reached that conclusion because asset allocation ...

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 ...

Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and beta in ...