Question: Explain in your words what beta and alpha measure. Also, provide an interpretation of the results of alpha and beta for this three companies :

  • Explain in your words what beta and alpha measure.
  • Also, provide an interpretation of the results of alpha and beta for this three companies :
Explain in your words what beta and alpha
symbol ActivePremium Alpha AnnualizedAlpha Beta Beta- Beta+ Correlation Correlationp- InformationRatio R- value squared TrackingError TreynorRatio 1 ERIE 0.0234 0.0103 0.1314 0.2771 0.1482 0.3170 0.2374 0.0297 0.0886 0.0564 0.2648 0.5233 2 ALL -0.0227 0.0023 0.0274 0.6396 0.7035 0.5738 0.6499 0.0000 -0.1388 0.4224 0.1635 0.1546 3 AJG 0.1075 0.0118 0.1518 0.6184 0.7068 0.3936 0.6408 0.0000 0.6551 0.4106 0.1641 0.3704

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