For Alpha we have terms and definitions in 14 topics. The topics are Accounting, Canine, Derivatives, EU Aerospace Acronyms, Finance, Financial, Gaming, Investment, Multimedia, Photography, Securities, Statistics, Technology and Vietnam War.

Alpha (Accounting)

is the measurement of returns from an investment in excess of market returns. It represents the amount expected from fundamental causese.g. the growth rate in earnings per share. This contrasts with BETAwhich is a measure of risk or volatility.

Alpha (Canine)

Term used to describe the highest ranked or most dominant individual of one's sex. Used of social animals: the alpha female of the wolf pack..

Alpha (Derivatives)

The amount that an investment's average rate of return exceeds the riskless rate, adjusted for the inherent systematic risk. One way to compute alpha is to regress an investment's excess rate of return (rate of return minus the riskless rate) against the market portfolio's excess rate of return. The intercept in this regression is an estimate of the risk-adjusted excess rate of return.

Alpha (EU Aerospace Acronyms)

Angle Of Attack

Alpha (Finance)

Measure of risk-adjusted performance. An alpha is usually generated by regressing the security or mutual fund's excess return on the S&P 500 excess return. The beta adjusts for the risk (the slope coefficient). The alpha is the intercept. Example: Suppose the mutual fund has a return of 25%, and the short-term interest rate is 5% (excess return is 20%). During the same time the market excess return is 9%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). The expected excess return given the risk is 2 x 9%=18%. The actual excess return is 20%. Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. Related: Risk-adjusted return.

Alpha (Financial)

Is a measure of the incremental reward (or loss) that an investor gained in relation to the market. Typically, this is measured as performance of a selected portfolio relative to a market benchmark. An enhanced S&P 500 portfolio might have an alpha of .25 which means that the pickup was .25% or a quarter point better than the standard. Is a measure of the incremental reward (or loss) that an investor gained in relation to the market. Typically, this is measured as performance of a selected portfolio relative to a market benchmark. An enhanced S&P 500 portfolio might have an alpha of .25 which means that the pickup was .25% or a quarter point better than the standard.

Alpha (Gaming)

Alpha is a specific stage of the development cycle. At this stage the game should be in a playable state but will contain many bugs. Alpha precedes Beta and Gold.

Alpha (Investment)

A coefficient measuring the risk-adjusted performance, considering the risk due to the specific security, rather than the overall market. A large alpha indicates that the stock or mutual fund has performed better than would be predicted given its beta (volatility).

Alpha (Multimedia)

See alpha channel and alpha mix.

Alpha (Photography)

The degree of opacity of an image in computer graphics. Not the same as luminance.

Alpha (Securities)

A statistical measurement used to determine the percentage of the change in a stock's price due to factors internal to the company, rather than to the stock market's fluctuations.

Alpha (Statistics)

Also known as SIZE or TYPE-1 ERROR. This is the probability that, according to some null hypothesis, a statistical test will generate a false-positive error : affirming a non-null pattern by chance. Conventional methodology for statistical testing is, in advance of undertaking the test, to set a NOMINAL ALPHA CRITERION LEVEL (often 0.05). The outcome is classified as showing STATISTICAL SIGNIFICANCE if the actual ALPHA (probability of the outcome under the null hypothesis) is no greater than this NOMINAL ALPHA CRITERION LEVEL (but see : TAIL DEFINITION POLICIES). This reasoning is applicable for all types of statistical testing, including RE-RANDOMISATION STATISTICS which are the concern of this present glossary. Also see : BETA, ERROR TYPES, P-VALUE.

Alpha (Technology)

See alpha test.

Alpha (Vietnam War)

Military phonetic for the letter 'A'

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