Alpha - Financial definition
Financial acronyms
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Concise definition of the term alpha
Alpha is the difference between an investment’s actual return and a set standard. In the case of shares, the standard often is the index of the market the share is listed on.
Comprehensive definition of the term alpha
In other words, alpha is the difference between the actual return and the so-called normal return, i.e. the return that is expected to result from market movements.