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What Is Alpha?

2010/5/20 18:34:00 39

What Is Alpha

The index of fund portfolio investment performance is a risk adjusted income index. Positive (negative) value indicates that the fund's investment return performance is high (low), which corresponds to the level of fund assets risk (measured by beta value). When the return of fund portfolio is highly correlated with the market index return, Alpha and beta are very effective indicators of investment performance. The Alpha value is generally annual interest rate.
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