The alpha for a particular fund for a particular period can be:
A) zero or positive, but not negative.
B) zero or negative, but not positive.
C) positive or negative, but not zero.
D) positive, zero, or negative.

Question

Quizplus · Accepted Answer

Alpha is a measure of the performance of an investment relative to a benchmark index. It can be positive (outperforming the benchmark), negative (underperforming the benchmark), or zero (matching the performance of the benchmark).

The Alpha for a Particular Fund for a Particular Period