ALPHA Definition

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ALPHA is the measurement of returns from an investment in excess of market returns. It represents the amount expected from fundamental causes, e.g. the growth rate in earnings per share. This contrasts with BETA, which is a measure of risk or volatility.

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FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) is a professional organization which develops accounting principles.

CONCENTRATION RISK is the risk that an investor will suffer from lack of diversification, investing too heavily in one industry, one geographic area or one type of security.

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