What is Alpha???
In matha
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Furthermore, in mathematics, the letter alpha is used to denote the area underneath a normal curve in statistics to denote significance level when proving null and alternative hypotheses. ... The uppercase letter alpha is not generally used as a symbol because it tends to be rendered identically to the uppercase Latin A.
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Alpha is used to determine by how much the realized return of the portfolio varies from the required return, as determined by CAPM. The formula for alpha is expressed as follows:
a = Rp – [Rf + (Rm – Rf) β]
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