Financial Management Question: Download Questions PDF
What is alpha of stocks?
Answer:
The meaning is not very different in the world of investing.
Most people who invest in stocks do so because they want a
return--this is the purpose of investing.
Alpha is the term given to the extra return.
Alpha measures the risk-adjusted return for a given asset.
Knowing the value of an asset that is driven by market
forces means nothing without gauging the risk associated
with owning the asset over a given time period. The best
investment is a stock or asset with a high return and
limited risk.
Most people who invest in stocks do so because they want a
return--this is the purpose of investing.
Alpha is the term given to the extra return.
Alpha measures the risk-adjusted return for a given asset.
Knowing the value of an asset that is driven by market
forces means nothing without gauging the risk associated
with owning the asset over a given time period. The best
investment is a stock or asset with a high return and
limited risk.
Download Financial Management Interview Questions And Answers
PDF
| Previous Question | Next Question |
| Explain MECHANISM OF ADR? | What is limit of petty cash book? |