Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310569 
Title: 
Authors: 
Year of Publication: 
2014
Citation: 
[Journal:] Journal of Accounting and Management Information Systems (JAMIS) [ISSN:] 2559-6004 [Volume:] 13 [Issue:] 4 [Year:] 2014 [Pages:] 607-622
Publisher: 
Bucharest University of Economic Studies, Bucharest
Abstract: 
"Alpha" has symbolic importance on the investments side of finance. That is, a fundamental pillar of modern finance theory is the risk-return relation, and traditionally alpha is taken to represent the degree of "mispricing" in asset returns. But, such an interpretation is not always appropriate – seemingly paradoxically, for certain specific setups alpha embodies pricing information. In this paper, I explain and illustrate the distinguishing circumstances between these two diametrically opposed cases.
Subjects: 
Alpha
Beta
empirical asset pricing
mispricing information
pricing information
JEL: 
G12
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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