Series 66: 4.3.1.2. Alpha

Taken from our Series 66 Online Guide

4.3.1.2. Alpha

According to the modern portfolio theory and the capital asset pricing model, a portfolio on the efficient frontier maximizes its expected returns and eliminates unsystematic risk. But stocks do not always perform as expected. When stocks behave differently from expectations, they will have an actual return that deviat

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Stephen Rice, Edward jones. Prairie Village, KS

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