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When is Beta/Alpha Appropriate to Use?


When is Beta/Alpha Appropriate to Use?


Modern Portfolio Theory (Beta/Alpha) is a good measure to use when analyzing an active manager. However, it is backward looking and should not be used for analyzing specific securities. Watch our market update to learn why.

Written by

James E. Gore, CFA®, CAIA, CMT®

Jim serves as the Chief Investment Officer of THOR, is a Chartered Financial Analyst charter-holder, a Chartered Alternative Investment Analyst, a Chartered Market Technician, a member of the Association for Investment Management and Research and a member of the Cincinnati Society of Financial Analysts.

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