Alpha - Revision history

imported>Doug Williamson: Add link.

2022-07-06T14:04:14Z

Add link.

2022-07-06T13:00:45Z

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← Older revision		Revision as of 13:00, 6 July 2022
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	It is a measure of the difference between the actual historic return from an investment, and the expected performance arising from exposure to market risk factors.		It is a measure of the difference between the actual historic return from an investment, and the expected performance arising from exposure to market risk factors.


	Also known as the 'error term'.		Also known as the 'error term'.

2021-06-23T12:36:27Z

Links ordering.

2021-06-22T22:54:46Z

Expand first definition.

← Older revision		Revision as of 22:54, 22 June 2021
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	1. ''Investment evaluation''.		1. ''Investment evaluation''.

	~~Alpha is~~ the ~~portion~~ of ~~an investment’s total return arising from specific (that is non-market) risk~~.		In the context of investment evaluation, the concept of alpha divides professional opinion.

	It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors.		One interpretation of alpha is that it is the portion of an investment’s total return arising from specific (that is non-market) risk.

			It is a measure of the difference between the actual historic return from an investment, and the expected performance arising from exposure to market risk factors.

	Also known as the 'error term'.		Also known as the 'error term'.

			An investment producing 'positive alpha' is one performing better than a benchmark with the same market risk.


	An investment ~~producing 'positive alpha' is one performing better than~~ a ~~benchmark with~~ the ~~same market risk~~.		Practitioners who are sceptical about alpha warn of the risks of attributing historic outperformance - in error - to the skills of company managements, or of the investment managers who selected the investments to incorporate into a portfolio, in circumstances where the outperformance may not be representative of the likely future performance.

2021-04-08T08:27:44Z

Update link.

2020-10-08T14:24:02Z

Add category.

2016-11-02T11:45:00Z

Expand.

← Older revision		Revision as of 11:45, 2 November 2016
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	Under the Basic Indicator Approach (BIA) calculation for operational risk capital adequacy, alpha is the weighting applied to gross income, to calculate the measure of risk.		Under the Basic Indicator Approach (BIA) calculation for operational risk capital adequacy, alpha is the weighting applied to gross income, to calculate the measure of risk.

			This weighting factor is also sometimes known as 'beta'.

2016-10-31T12:33:05Z

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← Older revision		Revision as of 12:33, 31 October 2016
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	2. ''Bank supervision - operational risk''.		2. ''Bank supervision - capital adequacy - operational risk''.

	Under the Basic Indicator Approach (BIA) for operational risk capital adequacy ~~calculation~~, alpha is the weighting applied to gross income, to calculate the measure of risk.		Under the Basic Indicator Approach (BIA) calculation for operational risk capital adequacy, alpha is the weighting applied to gross income, to calculate the measure of risk.

2016-10-29T11:02:13Z

Expand. Source: linked pages.

← Older revision		Revision as of 11:02, 29 October 2016
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	~~That~~ portion of an investment’s total return arising from specific (that is non-market) risk.		1. ''Investment evaluation''.

			Alpha is the portion of an investment’s total return arising from specific (that is non-market) risk.

	It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors.		It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors.
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	An investment producing 'positive alpha' is one performing better than a benchmark with the same market risk.		An investment producing 'positive alpha' is one performing better than a benchmark with the same market risk.


			2. ''Bank supervision - operational risk''.

			Under the Basic Indicator Approach (BIA) for operational risk capital adequacy calculation, alpha is the weighting applied to gross income, to calculate the measure of risk.


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	* [[Benchmark]]		* [[Benchmark]]
	* [[Beta]]		* [[Beta]]
			* [[BIA]]
	* [[Market risk]]		* [[Market risk]]

2016-10-26T13:25:00Z

Layout.

← Older revision		Revision as of 13:25, 26 October 2016
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	It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors.		It is a measure of the difference between the actual return and the expected performance arising from exposure to market risk factors.

	Also known as the error term.		Also known as the 'error term'.