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capm formula

Beta, Alpha, and CAPM: What They Actually Measure

September 12, 2026May 21, 2026 by Bruno
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.

Categories Market Education Tags alpha investing, beta explained, capm formula, investing basics, portfolio risk, stock market

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