4/13/2023 0 Comments Wolframalpha inverseThrough this guide, blue letters with a gray background give a link to a WA query. For example, following this link (opens new window) you can see what WA told me when I asked him who the US president is. Whenever you input something into WA, you get the link of your query, so that you can actually share what you asked and the answer given pretty easily. WolframAlpha's knowledge engine can be accessed online through (opens new window) but if you have access to a license, perhaps through your university/research center/company, you might want to install Wolfram Mathematica (opens new window), "a modern technical computing system spanning most areas of technical computing - including neural networks, machine learning, image processing, geometry, data science, visualizations, and others". WolframAlpha is most notable for its capabilities regarding mathematics and it can be a very powerful tool to help you with your computations. WolframAlpha (opens new window) (WA) is a computational knowledge engine, which is a very fancy way of saying that WolframAlpha is a platform that can answer your questions. Object detection based on Deep Learning.Object Instance Segmentation using TensorFlow Framework and Cloud GPU Technology.Introduction to Computer Vision using OpenCV and Python.Demystification of the key concepts of AI and ML.One investment strategy is to look for securities with positive alphas, which indicates they may be undervalued. If the stock gained 4%, it would have a positive alpha.Īlpha also refers to an analyst's estimate of a stock's potential to gain value based on the rate at which the company's earnings are growing and other fundamental indicators.įor example, if a stock is assigned an alpha of 1.15, the analyst expects a 15% price increase in a year when stock prices are generally flat. If a security's actual return is higher than its beta, the security has a positive alpha, and if the return is lower it has a negative alpha.įor example, if a stock's beta is 1.5, and its benchmark gained 2%, it would be expected to gain 3% (2% x 1.5 = 0.03, or 3%). Beta measures the security's volatility in relation to its benchmark index. Alpha.Īlpha measures risk-adjusted return, or the actual return an equity security provides in relation to the return you would expect based on its beta. Copyright © 2003 by Houghton Mifflin Company. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. For example, it may be the intercept in a multifactor model that includes risk factors in addition to the S&P 500. Hence, the alpha is 2% or 200 basis points. The expected excess return given the risk is 2 x 9%=18%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). During the same time the market excess return is 9%. Example: Suppose the mutual fund has a return of 25%, and the short-term interest rate is 5% (excess return is 20%). The beta adjusts for the risk (the slope coefficient). More appropriately, an alpha is generated by regressing the security or mutual fund's excess return on the benchmark (for example S&P 500) excess return. However, this does not properly adjust for risk. Some refer to the alpha as the difference between the investment return and the benchmark return.
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