al⋅pha
[al-fuh]
| 1. | the first letter of the Greek alphabet (A, α). |
| 2. | the vowel sound represented by this letter. |
| 3. | the first; beginning. |
| 4. | (initial capital letter ) Astronomy. used to designate the brightest star in a constellation. |
| 5. | Chemistry. one of two or more isomeric compounds. |
| 6. | the first in a series of related items: frequently used in chemistry and physics. |
| 7. | Chiefly British. a mark or grade corresponding to an A. Compare beta (def. 8), gamma (def. 9). |
| 8. |
|
| 9. | Chemistry. pertaining or linked to the carbon atom closest to a particular group in an organic molecule. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
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al·pha (āl'fə) n.
[Greek, of Phoenician origin; see lp in Semitic roots.] |
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Alpha
Al"pha\, n. [L. alpha, Gr. 'a`lfa, from Heb. [=a]leph, name of the first letter in the alphabet, also meaning ox.] The first letter in the Greek alphabet, answering to A, and hence used to denote the beginning. In am Alpha and Omega, the beginning and the end, the first and the last. --Rev. xxii. 13. Note: Formerly used also denote the chief; as, Plato was the alpha of the wits. Note: In cataloguing stars, the brightest star of a constellation in designated by Alpha ([alpha]); as, [alpha] Lyr[ae].Cite This Source
Alpha
1. A measure of a mutual fund's risk relative to the market. The formula for alpha is the following:
[ (sum of y) - ((b)(sum of x)) ] / n
Where:
n = number of observations (36 mos.)
b = beta of the fund
x = rate of return for the market
y = rate of return for the fund
2. The abnormal rate of return on a security or portfolio in excess of what would be predicted by an equilibrium model like the Capital Asset Pricing Model (CAPM).
Investopedia Commentary
1. An alpha of 1.0 means the fund outperformed the market 1.0%. A positive alpha is the extra return awarded to the investor for taking additional risk rather than accepting the market return.
2. If a CAPM analysis estimates that a portfolio should earn 10% based on the risk of the portfolio but the portfolio actually earns 15%, then the alpha of the portfolio would be 5%. This 5% is the excess return over what was predicted in the CAPM model.
Related Links
Understanding Volatility Measurements
A Statistical View of Mutual Funds
Mutual Fund Basics Tutorial
See also: Beta, CAPM, Jensen's Alpha, Mutual Fund, Weighted Alpha
Also spelled: alfa
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alpha
- The mathematical estimate of the return on a security when the market return as a whole is zero. Alpha is derived from a in the formula Ri = a + bRm which measures the return on a security (Ri) for a given return on the market (Rm) where b is beta. See also capital-asset pricing model, characteristic line.
Copyright © 2003. Published by Houghton Mifflin.
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Main Entry: 1al·pha
Pronunciation: 'al-f&
Function: noun
1 : the 1st letter of the Greek alphabet —symbol Α orα
2 : ALPHA PARTICLE
3 :
Main Entry: 2alpha
Variant: or α-
Function: adjective
1 : of or relating to one of two or more closely related chemicalsubstances
2 : closest in position in the structure of an organic molecule to a particular group oratom; also : occurring at or having a structure characterized by such a position <α-substitution>
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alpha al·pha (āl'fə)
n.
Symbol α The first letter of the Greek alphabet.- The first one in a series; the beginning.
- The first position from a designated carbon atom in an organic molecule at which an atom or radical group may be substituted.
- Characterizing the atom or radical group that is closest to the functional group of atoms in an organic molecule.
- Relating to one of two or more closely related substances, as in stereoisomers.
- Relating to or characterizing a polypeptide chain that is one of five types of heavy chains present in immunoglobins.
Copyright © 2002, 2001, 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company.
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Alpha
1.
The documentation is in german.
(1993-02-16)
2.
(1995-05-10)
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| alpha alphabetical |
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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fə
lp in Semitic roots.]