Brand Bitesize: Alpha
In this Brand Bitesize video, we take a quick look at what ‘alpha’ is and how it is calculated. In any given CII R02 exam, there’ll almost certainly be at least one question relating to alpha, but it could also appear in J10, J12, and AF4.
This video is correct as at 8 August 2023.
Alpha
Alpha is a measure of return that is independent of the underlying market performance – it’s a measure of an investment manager’s ability to pick stock. Alpha can be a positive or negative number – a positive alpha means a return greater than the market, and a negative alpha means a return less than the market.
Check out this short, informative video - it's Brand Bitesize, and this one's all about 'alpha' – useful for #CII AF4, R02, J10, and J12 exam revision. Share on X
Grab the resources you need!
If you’re studying for your CII R02 exam and aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R02 calculation workbook taster now!
Alternatively, you can try the taster for AF4, J10, or J12 if you’re studying for one of those exams.