Two Betas Making Alpha
Pirates of Finance
00:00
Alpha Is Just a Factor That Hasn't Been Found Yet
There's this idea of the shrinking alpha, which is like back in the day before we had these defined risk factors. It was like anything that wasn't the market return, if it was positive excess returns, was alpha. And then you get to like the Fama French three factor model and you say, well, if it's value in size... Is that alpha anymore? I just hit a point in my career that I'm like, someone else argue as to whether it's alpha or not.
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