Source: wikibot/alpha-effect
= Alpha effect
{wiki=Alpha_effect}
The term "Alpha effect" can refer to different concepts depending on the context. Here are a few predominant uses of the term: 1. **Finance and Investments**: In finance, the Alpha effect relates to the performance of an investment relative to a benchmark index, usually in the context of active portfolio management. Alpha is a measure of the excess return of an investment compared to a market index.