Cryptocurrency Q&A
How is alpha calculated?
How is alpha calculated?
Daniele
Wed Oct 09 2024
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7
answers
1360
Could you please elaborate on the process of calculating alpha in the world of finance and investing? I'm particularly interested in understanding the mathematical formula behind it, as well as the significance of this metric in evaluating the performance of a portfolio or an investment strategy. Is it a measure of absolute return or relative to a benchmark? How does it help investors make informed decisions? I'm looking forward to gaining a deeper understanding of this concept.
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