Alpha

Business / Finance / Alpha: 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.

Alphabet Poem

Entertainment / Literature / Alphabet Poem: An acrostic poem of thirteen lines in which each line consists of two words, each word beginning with sequential letters in the alphabetic pattern ABCDEF, etc. Deutsche noteas that many poets like Pau MORE

Alphanumeric

Technology / Cell Phones / Alphanumeric: A message or other type of readout containing both letters (alphas) and numbers (numerics). In cellular, alphanumeric memory dial is a special type of dial-from-memory option that displays both the na MORE

Alpha Particle

Science / Chemistry / Alpha Particle: (42He) A particle that is commonly ejected from radioactive nuclei, consisting of two protons and two neutrons. Alpha particles are helium nuclei. Alpha particles have a mass of 6.644 655 98 × 10-27 MORE

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