What is Beta and Alpha?

Beta: Beta represents the sensitivity of a stock with respect to market. Examples: Stock with 1.1 of beta means if market is up by 10% over a period, stock will be up by 11% = (1.1*10) Alpha: Excess Return earned over the benchmark market rate of return (like Nifty, Sensex)

Study Smart: The Ultimate Exam Guide by Yugantar Gupta
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