Questions tagged [performance measure]

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CryptoMystic CryptoMystic Mon Oct 07 2024 | 7 answers 1466

Why alpha is good?

Could you elaborate on why alpha is considered advantageous in the realm of finance and investing? How does it contribute to a portfolio's performance, and what sets it apart from other measures of investment success? Is there a specific methodology or set of strategies that investors often employ to achieve alpha? Furthermore, what are the potential risks and drawbacks associated with pursuing alpha, and how can investors balance the pursuit of alpha with risk management?

Why alpha is good?

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