No, we’re not talking about Boris Kodjoe's custom suit company. When evaluating an investment, alpha refers to an investment strategy’s ability to beat the market. It is referred to as a measure of excess return over a benchmark index.

Alpha is expressed as a number. If an investment has an alpha of +4, this means that the investment outperformed its index by 4%. However, if an investment’s alpha is -2, then it underperformed the benchmark by 2%. 


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