Beta, Alpha, and CAPM: What They Actually Measure
Beta measures how a stock moves with the market. CAPM converts that risk into a required return. Alpha is what’s left over. Here is what each really means, with verified data.
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Beta, Alpha, and the CAPM: What These Numbers Measure
Beta measures market sensitivity, alpha tracks excess return. Here’s what these numbers mean and four ways CAPM breaks down in practice.