Alpha Definition & Application Wiki
Last Updated by WikiWealth
Short Definition:
Risk factors not incorporated into the financial data of a company such as bankruptcy and financial disasters.
Wikiwealth uses alpha to increase the discount rate to investments, which add investment risk not forecastable, after reviewing company financial statements, industry reports, or other publicly available information (e.g. Litigation Risk).
Long Definition:
See Dictionary Terms
See Academic Resources
- Beta Calculator
- WACC Discount Rate Model
- Private Equity Discount Rate
- WACC Calculator
- Jensen, Alpha Risk Calculator
Source: http://en.wikipedia.org/wiki/Alpha_(investment)


