Alpha vs. beta: When to use which metric? To help illustrate all these points, I will use an example of Warren Buffett's Berkshire Hathaway ( BRK.A 0.23% )( BRK.B 0.51% ) annual returns compared ...

You can’t earn alpha by investing in a benchmark index fund such as an S&P 500 index fund, which is the definition of beta. Bottom line. While alpha and beta might sound like complex and ...

'Alpha’ tells investors how a security has historically performed vs. a benchmark while ‘beta’ shows volatility over time vs. the market. Learn more about their differences and uses.

Alpha and beta are two terms that get thrown around a lot in investing. They sound complicated, but they’re actually much simpler than they seem. Here’s what you need to know about alpha and ...

Alpha measures an investment's return relative to a benchmark, while beta measures risk. Find out how these two metrics can help you pick investments that match your risk/return profile.