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Finance: What is Alpha? 11 Views


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Description:

What is Alpha? Alpha is an investing term that describes the success of an investment. It looks at the investment’s ability to beat beta (or market risk) and outperform the overall market.

Language:
English Language

Transcript

00:00

Finance allah shmoop what is alfa All right well you've

00:06

heard of the alfa dog the alfa male an alfa

00:10

bet soup investing alfa is good when you have a

00:14

lot of it If your index iii the set of

00:17

investment returns numbers you were being measured against was saying

00:22

the s and p five hundred and it went up

00:24

eleven percent last year and you ve a trading or

00:28

investing in stocks and maybe options and whatever other vehicles

00:32

you deployed like dead and you know leverage and you

00:35

were on lee up eight percent last year Well then

00:38

you had low alfa sorry just keeping it real You

00:41

actually destroyed value after all your hard work from that

00:45

year you could have done nothing I he just let

00:47

your money sick and an s and p five hundred

00:50

index fund played golf all day and night If you

00:53

you know had those glow in the dark ball thing

00:55

is and you would have done three hundred basis points

00:58

better than you did trying teo you know outsmart mr

01:01

market So hi alfa Good low alfa bad unlike your

01:05

depressing golf score ask sophie if you need some help 00:01:09.415 --> [endTime] Home

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