Answer / vidya . p

The meaning is not very different in the world of investing.
Most people who invest in stocks do so because they want a
return--this is the purpose of investing.
Alpha is the term given to the extra return.

Alpha measures the risk-adjusted return for a given asset.
Knowing the value of an asset that is driven by market
forces means nothing without gauging the risk associated
with owning the asset over a given time period. The best
investment is a stock or asset with a high return and
limited risk.

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