What Does Alpha Mean in Investments? - TheStreet Definition

Dictionary of Financial Terms

"Alpha" tells you how a fund is actually doing compared to its "beta" (a volatility measure that is supposed to give you some sense of how far the fund will fall if the market takes a dive and how high the fund will rise if the bull starts to climb). If the beta is 1.5, and the fund rises 15% more than the market, then the alpha is zero.

Definitions of Financial Terms