Beta measures the volatility of a security or a portfolio relative to a market benchmark. Beta, represented by the Greek lowercase letter β, is also used in the formula for the weighted average ...

Alpha measures a manager's skill in adding value to a portfolio beyond market gains. Beta assesses how a stock or fund's volatility compares to the market average. High alpha and low beta indicate ...

The formula is rather elegant ... alpha and beta are correlated, so a high-beta portfolio will have a higher alpha. Here are the advantages of using alpha and beta as portfolio return and risk ...

Harry Markowitz pioneered modern quantitative analysis with his introduction of Modern Portfolio Theory in the ... or underperforms a benchmark. Beta is a measurement of an investment’s ...