Alpha is frequently used interchangeably with "excess return" or the "abnormal rate of return" when compared to a benchmark after adjusting for risk.
The beta coefficient, or simply beta, is a crucial concept in finance that measures the systematic risk associated with an individual stock or portfolio compared to the overall market.
Beta as used in finance, investing, and stock trading refers to the risk exposure of a specified financial asset in relation to the overall market, otherwise referred to as systematic risk.
