Daniel McNulty began writing for Investopedia in 2012. His work includes articles on financial analysis, asset allocation, and trading strategies. Dr. JeFreda R. Brown is a financial consultant, ...

Jesse Emspak has 20+ years of experience as journalistic entrepreneur and 10 years of financial services reporting on Wall Street. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced ...

Alpha and beta are two statistical measurements used in modern portfolio theory (MPT) to help investors determine the risk-return profile of an investment. Both are measures of past performance, and ...

Two terms often tossed around within the investing community are “alpha” and “beta.” While metrics such as price-to-earnings ratio and tangible book value per share are relatively self-explanatory, ...

Alpha and beta are measures used by investors to classify the performance and risk of an investment security or portfolio. Beta is a measure of market risk, and alpha expresses whether the returns of ...