define alpha and beta
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Beta is a measure of systematic risk that cannot be avoided through diversification. In mutual funds the beta of the benchmark is always considered as 1.00 and the beta of the mutual fund varies in accordance with the benchmark.
Alpha is also known as the Jensen's measure is a risk-adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the expected returns. In mutual funds the measure of alpha denotes the performance of the fund manager.
Alpha is also known as the Jensen's measure is a risk-adjusted performance measure that represents the average return on a portfolio or investment above or below that predicted by the expected returns. In mutual funds the measure of alpha denotes the performance of the fund manager.
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